A123Systems Files Registration Statement For Initial Public Offering

August 11, 2008 by Jeff Shepard

A123 Systems, Inc. announced that it has filed a registration statement with the Securities and Exchange Commission (SEC) relating to the proposed initial public offering of its common stock.

The joint book-running managers of the proposed offering will be Morgan Stanley & Co. Inc. and Goldman Sachs & Co. Merrill Lynch and Pierce, Fenner & Smith Inc. will serve as co-lead manager, and Broadpoint Capital, Inc. and Lazard Capital Markets LLC will serve as co-managers.

The company states that it intends to raise as much as $175 million which will be used to expand its manufacturing and research facilities as well as address repayment of approximately $2.5 million in debt.

A123 Systems was spun out of the Massachusetts Institute of Technology seven years ago to commercialize lithium-ion batteries for a range of applications. The batteries, which the company says last longer and are more powerful than existing lithium-ion batteries, are already being used in power tools.

According to the company, it sees more potential in the nascent markets of electric transportation and energy storage. The company has also developed batteries for plug-in hybrid cars and acquired Hymotion, which retrofits hybrids with bigger batteries. General Motors is testing the batteries for use in the Chevy Volt.

Last month, a company executive indicated for the first time publicly that A123 Systems is also pursuing energy storage on the power grid with a dedicated group. It also indicated that it is working with utility AES on grid-storage projects.