Don't try telling that to investors on Wall Street, who have sharply bid up the price of a lithium-ion battery company's initial offering today. Shares of A123 Systems (symbol AONE) are up over 50% from this morning's offering price of $13.50, which had been raised from earlier estimates of around $8. After a delayed opening, the shares began trading at $17 and reached a high of $21.14 before retreating slightly to $20.29 at 4 pm. Volume was over 41 million shares.
The company, "one of the world's leading suppliers of high-power lithium ion batteries", has contracts to supply batteries for hybrid and electric cars to 7 auto manufacturers worldwide, including Chrysler, GM, and Nissan.
The A123 CEO Dave Vieau was interviewed this morning on CNBC:
From the press:
- AP, A123 Systems goes public with a splash
- MarketWatch, A123 Systems jolts IPO market
- WSJ, Traders Give A123 Systems IPO a Charge
- TheStreet.com, A123 Systems Soars on IPO, but Why?
- Bloomberg, A123 Surges in First Day on Electric-Vehicle Demand
- BoGlo, Shares in A123 IPO hit $20.09 in afternoon trading
- WaPo, MIA
Disclaimer: CapitalClimate unfortunately does NOT own shares in A123.