ELMO Rent brings remotely controlled cars and at least 50 new electric vehicles to the streets with IPO revenues
On Friday, 4 June, the initial public offering of ELMO Rent AS shares will start on the Tallinn Nasdaq stock exchange, with whose support the company plans to launch the testing of the remote car sharing service in Tallinn as early as this year. In addition, the company will use the revenues of the IPO to roll out at least 50 new electric vehicles and start preparations for entering foreign markets.
According to the founder of ELMO Rent AS Enn Laansoo, Jr., the company wants to contribute to the creation of a people-centric urban space by focusing solely on the environmentally friendly vehicle sharing service and reducing the number of shared vehicles burdening city streets and car parks.
“Rental cars, scooters and other vehicles parked on the streets might be convenient for their users, but many citizens are rather annoyed that pedestrian roads and streets are filled with scooters, even the few parking spaces are sometimes occupied for days by parked rental cars. Our entire business concept is built on the principle that our vehicles must not pollute the urban environment in any way – neither its air nor its kerbs and pavements. Therefore, all our shared vehicles stop at distribution points, and our remotely controlled electric cars will also start their journey to the next customer or return to the distribution point after the trip,” explained Laansoo.
According to him, the company has reached the final stage of development of its remote control car technology. “This autumn, the first citizens will be able to order an electric shared car to their doorstep in just a few clicks as part of the street tests,” he expressed his satisfaction with the company’s progress.
According to him, the introduction of remotely controlled cars will increase the activity and efficiency of the car fleet and offer customers more flexibility in using the sharing service.
“ELMO’s environmentally friendly vehicle fleet is in use today more than 36% of the time, which is a huge improvement from the 4% use level of the average personal car. Since the user no longer has to worry about the location of the nearest rental car, I am convinced that the use of these vehicles will increase by more than 50% in the coming years thanks to our innovative technology,” he said.
“A fivefold increase in our turnover and a tenfold increase in EBITDA over the next three years is more than realistic,” he added.
Another purpose of the public offering of shares is to raise funds for the acquisition of at least 50 new electric vehicles, which will strengthen the company’s position as the owner of the largest electric car fleet in Estonia. In addition, with the support of the investments engaged, ELMO Rent will start preparations for entering the distribution service markets of other European countries.
“The car sharing service is significantly more popular in Europe than in Estonia, and there are quite a lot of distribution companies offering electric cars in other countries. Our novelty will be the first-time presentation of remote-controlled car technology; offering an environmentally friendly service based on this innovative technology will be our competitive advantage and a topic of discussion for many years to come,” confirmed Julia Nekrassova, CEO of ELMO Rent.
“In order to quickly enter the new market, we are ready to consider buying existing companies and certainly also a partnership,” Nekrassova laid the cards down.
According to the founder of ELMO Rent, the team wants to give people the opportunity to be a shareholder in an environmentally friendly and rapidly growing Estonian company focusing on the development and implementation of environmentally friendly future technology. A total of 120,000 shares will be offered for listing, and if the result is successful, the number of shares will be increased by 80,000.
The price of one share is 5 euros, of which EUR 0.10 is the nominal value and EUR 4.90 is the share premium. Only integer shares can be subscribed to. The subscription period on the Nasdaq Baltic First North alternative market lasts from 4-14 June, during which time the company wishes to raise 600,000-1,000,000 euros from investors.
About the company:
ELMO Rent AS is a company founded by the State of Estonia in 2013 which has been actively growing in private hands since 2017. Its main field of activity is the provision of environmentally friendly vehicle sharing services and the development, marketing and scaling of related environmentally friendly and innovative technology.
ELMO Rent is one of the first electric car distribution companies in the world and the first company of rental vehicles with a responsible business quality label in Estonia.
Introduction to the initial public offering of ELMO Rent AS shares: https://elmorent.ee/wp-content/uploads/2021/06/ELMO-Rent-IPO-tutvustus.pdf
Nasdaq Tallinn stock exchange announcement on the initial public offering of ELMO Rent AS shares: https://view.news.eu.nasdaq.com/view?id=b8f0e92fff25a03a667907c0e79afbef4&lang=en
Recording of the IPO presentation of ELMO Rent AS (2 June 2021): https://www.facebook.com/elmorent2.0/videos/4157398280983915