Lithium-Ion Battery Maker's IPO a Hit With Investors
WATERTOWN, MA --- A 50-percent jump in the shares of lithium-ion battery maker A123 Systems on the company's first day of trading last week provided a big boost for the clean-tech market.
Reuters reported that when the market closed Sept. 24 after the initial public offering of 28,180,501 shares of A123 Systems' common stock, the company was worth over $1.9 billion. That's a noteworthy number since the company hasn't yet turned a profit and still needs large-scale commercialization. The stock's first-day jump is the second-best performance for a debut stock in 2009.
A123 Systems develops and manufactures advanced lithium-ion batteries and battery systems for transportation, electric grid services and consumer markets. Last month, the company announced it had been awarded a $249 million grant from the Department of Energy's Electric Drive Vehicle Battery and Component Manufacturing Initiative.