A123 Hoping to Cash In With an IPO

Filed in Business by on September 11, 2009 0 Comments
©DirectoryofCambridge.com

©DirectoryofCambridge.com

MIT grads Dr. Yet-Ming Chiang and Ric Fulop are hoping that the environment for IPOs goes their way soon.  According to BBJ A123 Systems has filed for an offering of 25 million shares of common stock.  They are hoping to raise up to about $240 million based on the price of between $8 and $9.50 per share.  A123 is based in nearby Watertown, Massachusetts and was in the news last month when it got $249.1 million from the US government from the Recovery Act.  That money will mostly be used for building an advanced battery production plant out in Michigan.  They did mention at the time that R&D jobs could be a major benefit here in Massachusetts which of course would be more than welcome.

A123 was founded by Dr. Yet-Ming Chiang , Ric Fulop and Dr. Bart Riley based on work at MIT.

Founded in 2001, A123Systems’ proprietary Nanophosphate™ technology is built on a new nanoscale materials initially developed at the Massachusetts Institute of Technology.

John Petersen of stock and investment site Seeking Alpha wrote back in August that the IPO is necessary just to come up with the matching funds for the Recovery Act Grant money they were awarded.

If the IPO surpasses expectations hopefully there would be enough left over to invest even more in R&D which could help the Cambridge area job market.  It will be interesting to see how this goes because on paper A123’s prospects are huge given their presence in China as well.

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