Growthdeck achieves first IPO as electric motor developer Saietta Group delivers up to 22x for investors
Growthdeck has exited its investment in electric vehicle developer Saietta Group via an IPO on London’s Alternative Investment Market, delivering up to 22x valuation to Growthdeck’s early stage EIS investors.
The AIM IPO, which took place on Wednesday, 7 July, raised GBP37.5 million of new investment, and gave Saietta Group a market capitalisation of cGBP105 million. The IPO will allow the group to establish a motor durability testing facility and expand European production capacity to 100,000 motors per year.
Growthdeck raised three separate rounds of investment for Saietta in 2017, 2018 and 2020. While returns vary depending on how long investors have held their shares, Growthdeck’s investors will all show at least a 2x gross return, with some receiving as much as a 22x gross uplift.
Growthdeck investors have held their Saietta shares for an average of three years and will see an average Internal Rate of Return (IRR) at the flotation of 45% p.a. These returns would have been boosted further when Enterprise Investment Scheme (EIS) tax reliefs are claimed, with the average IRR for a Growthdeck investor rising to 60 per cent pa.
EIS enables investors to claim up to 30 per cent income tax relief on the value of investments in qualifying companies, as well as being free from Capital Gains Tax**.
The Saietta Group IPO is Growthdeck’s second major exit, following the successful sale of part its holding in upscale gym chain 1Rebel to Candy Ventures, the growth investment vehicle of property investor Nick Candy.
Saietta Group specialises in motors for a broad range of electric vehicles, taking high end technology developing it for low-cost mass production. Its e-motor technology can be deployed across a range of vehicles, from scooters to buses.
Saietta is aiming to capitalise on its unique positioned to disrupt the Asian light motorcycle market. By 2030, global annual motorbike sales are expected to increase to around 100 million - 40% of which are forecast to be electric.
Simon Emary, Growthdeck COO, says: “Saietta is a business we have believed in from the beginning and we are delighted to reach the point of a successful IPO.”
“This investment shows EIS working exactly as it should – providing an exciting, fast-growth British business with the capital to scale up and reach the next stage of its development.”
“Saietta’s technology is at the cusp of mainstream adoption and is set to play a major role in the electric motorcycle market in the near future.”