A123 started at a 25.9 percent premium to their IPO price and closed at $20.29 on the Nasdaq, and this for a company which never posted profit. Their performance is, Autonews reports, reminiscent of the IPO market from one decade ago.
As all of you might have guessed, A123’s success is largely due to the fact that there no single notable car manufacturer out there who is not considering bringing an EV or a hybrid onto the market in the following years.
"It's a long-term play on the lithium-ion space,” ThinkEquity analyst Michael Lew was quoted as saying by the source. He added that other battery manufacturers, inspired by A123’s feat, may also decide to submit their own IPOs.
A123 is one of the favorites in winning the battery wars in the US. It has already signed a deal with American manufacturer Chrysler for the supply of advanced lithium-ion batteries to be fitted on their EVs.
Recently, A123 was awarded by the US $249.1 million for the "manufacturing of nano-iron phosphate cathode powder and electrode coatings; fabrication of battery cells and modules; and assembly of complete battery pack systems for hybrid and electric vehicles."
For those of you who are into motorcycles, A123 is also one of the companies behind the KillaCycle, the quarter mile record holder for electric motorbikes.
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