Formula E Looking To Attract Carmakers Ahead Of Possible Initial Public Offering

Formula E, bankrolled with $100M by Boston Celtics managing partner Wyc Grousbeck and others, "wants to seduce sports fans and carmakers with a view to a possible initial public offering," according to Alex Duff of BLOOMBERG.

At the series offices in London, Formula E CEO Alejandro Agag said that "Renault SA is a series sponsor and Audi AG, which is backing one of 10 teams, also has 'a foot in the door.'" Agag said luring more carmakers is “very, very important" for the series and representatives from 10 auto companies were guests in Beijing. He "declined to identify them," saying he did not want to jeopardize confidential negotiations.

Mark Gallagher, who has worked as an auto racing exec for Ford Motor Co. and Cosworth Ltd., said that carmakers "will be watching for the public’s reaction and the reliability of the cars." Gallagher said, "They’ll be looking to see whether it can give electric cars the wow factor. If the cars last the full race distance and look quick then it will be very attractive." Enrique Banuelos, a developer who lost most of his $5B fortune in Spain’s real estate crash, "is the biggest investor and Agag also holds a stake." Agag said that investors could hold an IPO in "anything from two to five years" or a sale to a private equity firm. He added that the holding company "is domiciled in Hong Kong partly for a potential share sale" BLOOMBERG

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