A123 Systems Closes First Day of Trading with Market Value of Almost $2B
24 September 2009
Li-ion battery maker A123 Systems went public today in a widely anticipated IPO. Initially priced at $13.50/share, the company opened trading on the NASDAQ this morning at $17.00, and closed at $20.29, resulting in a market value of $1,964,396,640 at the end of the day.
Share volume on day one was 41,165,289; shares outstanding are 96,816,000. The initial public offering was of 28,180,501 shares. Of the shares in the offering, 27,500,000 shares were offered by the company and 680,501 shares were offered by selling shareholders. The company granted the underwriters the option to purchase up to an additional 4,227,075 shares at the initial public offering price to cover over-allotments, if any.
Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. acted as joint book-running managers for the offering. BofA Merrill Lynch, Deutsche Bank Securities Inc., Lazard Capital Markets LLC, and Pacific Crest Securities acted as co-managers of the offering.
In its S-1/A filed with the SEC, for the year 2008, A123 reported an operating loss of $79.592 million on total revenue of $68.525 million, which included product sales and research and development services. For the first six months of 2009, the company reported an operating loss of $40.262 million on total revenue of $42.922 million.
2008, loss of $79.592 million - 2009 1st day IPO market value of $1,964,396,640
I've approached my finances wrong..
Posted by: kelly | 24 September 2009 at 06:19 PM
Based on the performance of most high-profile IPOs (GOOG being one notable exception) you should be able to buy this stock on the open market for $5.00/share--or less, perhaps--within the next couple of years.
Posted by: Nick Lyons | 24 September 2009 at 09:06 PM
The new bubble alternate energy. Almost none of the investors in this company even know what lithium is. They are just gambling that the price will bubble up for a while, even with losses. The value of the company did not increase overnight. There should be goverment control on how fast a stock can rise, 1 percent a day maximim.
If you want to make money even while you are losing it, work as an investment banker at a company that is too big to fail; make sure that you get automatic bonuses for the taxpayer to pay. The US miscalculated on Lehman. There will be people who will loose big on this one, and not because they don't sell a product. ..HG..
Posted by: Henry Gibson | 25 September 2009 at 02:00 AM
For unbelievers, have a look at BYD. It went from about $10/$11 to over $70 a share since Warren Buffet bought 25,000,000 shares earlier this year. A very wise gentleman. No wonder he is a multi-billionaire.
Future e-cars + associated e-storage units + e-ancillaries may very well be behind the next market bubble.
Whoever mass manufactures all three technologies economically will be in the limelight. That's what BYD is trying to do.
Posted by: HarveyD | 25 September 2009 at 10:17 AM
@HarveyD:
For every Google there were 100s of Webvans. A small few startups will succeed in the long run. Most will fail, even if they have a successful IPO. Can you pick the winners in advance? I know I can't.
Posted by: Nick Lyons | 25 September 2009 at 12:29 PM
Nick:
Between major melt down, the market goes through one bubble after another. That's a bit how some smart investors get to be very rich.
Others do it
following proven investors tactics. A Warren Buffet Index could help.
Posted by: HarveyD | 25 September 2009 at 01:03 PM