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A123 Systems Completes IPO, Trading at US $20

A123 Systems Inc. last week, completed an initial public offering of 28,180,501 shares of its common stock at US $13.50 per share. The shares will begin trading on Thursday, September 24 on The Nasdaq Global Market under the ticker symbol “AONE.”

Of the shares in the offering, 27,500,000 shares are being offered by the company and 680,501 shares are being offered by selling shareholders. The company has 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.

During the first day of trading, the market responded to the IPO by pushing the price of the stock to $20.18, a 50.3 percent increase on the first day of trading. The stock dropped off slightly on Friday to $19.87

Earlier this year, the future of A123’s IPO was in some doubt, in part because it lost a contract to produce batteries for the Chevy Volt and in part because it’s manufacturing facility was without funding. The company went out and raised more than $69 million and picked up a new contract from Chrysler.

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.

Also this week, EcoCAR: the NeXt Challenge, held an event for the program’s Fall Workshop in Boston. EcoCAR sponsors, A123Systems, General Motors Company, the U.S. Department of Energy and the Workshop’s host, The MathWorks, were on hand to guide the students with technical expertise, advanced engineering tools and state-of-the-art powertrain components as the teams build the green cars of the future.

The event also included presentations from the sponsors that highlighted the goals of Year Two, their specific contributions to the teams and their commitment to advancing education in engineering, science and math.

“We partner with the EcoCAR Challenge because we believe that the future of the clean technology shift lies with the next generation of innovators by providing the opportunity to develop new vehicle technologies that can significantly improve the environmental impact of future vehicle design,” said Rob Mosher, director of Product Marketing at A123Systems.