Friday, August 8, 2008

A123 Systems files for $175M IPO

By Mass High Tech Staff

Watertown-based lithium ion battery maker A123 Systems Inc., which has been rumored to be one of New England’s top IPO prospects, has today added legitimacy to the rumor by registering for an initial public offering aimed at $175 million.

The offering would support the company’s working capital and general corporate use, as well as expansion of manufacturing facilities, acquisitions of other businesses, investment in research and development and repayment of $2.5 million in debt, according to a registration statement filed with the U.S. Securities and Exchange Commission.

A123 Systems, which plans to list on Nasdaq Global Market under the ticker symbol AONE, reported a net loss in 2007 of $31 million on total revenue of $41.4 million.

Managing the proposed offering are Morgan Stanley & Co. Inc. and Goldman Sachs & Co.

Rumors of the IPO filing have some suggesting that A123 Systems could be the region’s first $1 billion VC-backed IPO.

In April, the company publicly launched its Hymotion product line, which can convert Toyota Prius hybrid vehicles into 100 mpg, electric-powered plug-in hybrids to consumers. A123 Systems will continue to sell the conversion modules to fleet and government buyers. Officials report there are more than 50 vehicles on the road today as part of corporate and government demonstration programs.

Founded in 2001, A123Systems is bringing nanophosphate-based lithium-ion batteries to a number of applications, including vehicles and power tools, using patented nanophosphate technology developed and licensed from MIT. David Vieau, president and CEO of the company, was named a Mass High Tech All Star in 2007.

The company has raised more than $102 million in private funding from investors including Alliance Capital, FA Technology Ventures, North Bridge Venture Partners, Sequoia Capital, OnPoint, the Massachusetts Institute of Technology, Motorola, Qualcomm and Desh Deshpande, the company’s chairman.