Shares of lithium-ion battery maker A123 Systems had the second-best debut of any 2009 U.S. initial public offering. Shares were up 50.3 percent in their first trading session, outpacing the four other stocks that came to the market on a busy day for IPOs.
Starting at a 25.9 percent premium to their IPO price, A123 system closed the day at $20.29 on the Nasdaq in a performance that was reminiscent of the IPO market more than a decade ago.
“Investors were drawn to A123 because every major global automaker has plans to bring electric vehicles to the market in the next two to three years,” said ThinkEquity analyst Michael Lew.
He said that “it’s a long-term play on the lithium-ion space.”
– By: Stephen Calogera