Eve Raising $230 Million To Support eVTOL Aircraft Development

Eve Air Mobility plans to raise $230 million in equity capital through a share offering that is set to close on August 15. The government-backed Brazilian Development Bank (BNDES), along with Embraer and several institutional investors, subscribed to the offering of 47,422,680 shares in common stock, priced at $4.85 per share.

The offering includes new Brazilian Depository Receipts backed by BNDES that will be listed on the São Paulo stock exchange. Eve will use the proceeds from these to cover the cost of services performed in Brazil, where it is manufacturing the four-passenger eVTOL Eve 100 it is developing for service entry in 2027.

In May 2022, Eve raised $337 million through an initial public offering on the New York Stock Exchange based on its merger with special acquisition company Zanite. In trading on August 13, Eve’s stock closed at $5.86. According to the company, it has now raised more than $1 billion.

“Eve’s dual listing in the U.S. and Brazil is aligned with our continuous effort to diversify our investor base, bringing new stockholders from different locations,” said the company’s chief financial officer, Eduardo Couto.

Earlier this month, Eve’s main shareholder, Embraer, warned that it expects its balance sheet to be hit by a further $45 million to cover tariffs on business jets and airliners imported to the U.S. market, having already incurred $20 million in tariff costs in the second quarter. The group’s CEO, Francisco Gomes Neto, said it is lobbying the U.S. government to secure a waiver for aviation and aerospace goods made in Brazil.  

So far this year, there have not been many new capital raises among eVTOL aircraft developers, with the notable exception of more funding going to sector leaders Joby and Archer. On July 30, Israeli start-up Air closed a Series A funding round that raised $23 million to support work on its Air One eVTOL vehicles.