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USA: An Under-The-Radar IPO, Smith Electric Sees Huge Backlogs

Electric vehicle maker Smith Electric Vehicles (SMTH) is set to price its initial price offering the end of this week or beginning of next week. The company sells zero emission commercial vehicles. Smith Electric is looking to sell a total of 4.45 million shares, with 4.22 million coming from the company, and an additional 0.23 million are being sold by existing shareholders. The pricing is expected to be $16 to $18 per share.

The company’s fleet of vehicles are sold to customers in the following areas:

Food and Beverage: Frito Lay, Coca-Cola

Utilities: KCP&L

Retail: Staples, Duane Reade

Grocery: Sainsbury’s

Package Delivery: FedEx, DHL, TNT

Military: Army, Navy, Marine Corps

The Smith Newton is the company’s primary vehicle. Vehicles range in size from 14,000 to 26,400 pounds. Vehicles can go 40-150 miles on a single charge. The Newtons are sold in the United States and internationally.

Smith Edison is the company’s smaller lighter duty electric vehicle sold in the United Kingdom and other territories. Edisons range in size from 7,700 to 10,100 pounds. The vehicles can travel 55-110 miles on a single charge.

Advantages that Smith Edison has are:

Lower cost per mile

Less volatility

Less maintenance

Minimal infrastructure requirements

Fuel efficient with low environmental impact

Pike Research LLC says the average cost for a commercial vehicle is $0.72 per mile when using a diesel engine. Electric vehicles see the average mile cost $0.22. Once more large companies recognize this, they will make the initial investment in Smith Electric technology. Smith Electric competes with Ford (F), ZeroTruck, and Electric Vehicles International.

The company lists the following as its competitive strengths:

Focus on commercial electric vehicles

First mover with established major commercial fleet relationships in the United States, Europe, and Asia

Low capital intensity of production

Our vehicle and system design facilitates component-based cost reduction and protection of our trade secrets and know-how

Modular battery system design that allows customers to configure each truck’s range based on its application and significantly impact the total cost of vehicle operation

Focus on medium-duty commercial vehicles positions to avoid competition with heavy-duty truck and light duty automotive OEMs
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