A few days ago, I asked whether investors should get charged up about the IPO of lithium-ion battery maker A123 Systems
On Thursday, the offering was boosted from 25 million to 27.5 million shares (plus 680,501 shares sold by existing stockholders), and priced at $13.50 per share. Investors piled on all day, pushing the share price up past $21 at one point.
So much for our preliminary share structure calculations. Based on the current price of $19.61, here's an update:
Share Structure and Capitalization |
Numbers |
---|---|
Shares outstanding |
98.2 million |
Market capitalization |
$1,925 million |
Cash and equivalents |
$457.7 million |
Debt |
$16.2 million |
Enterprise value |
$1,483.5 million |
Book value |
$515.1 million |
Data from company filings.
Whoa, Nelly! Before the IPO, we were looking at a market cap of barely over $1 billion, and an enterprise value of less than $700 million. Now, A123 is priced at around 3.75 times book value, and its ratio of enterprise value to lifetime total sales has jumped to 7.9. Jeez, A123, leave some hype for Shanda Games
At around half its current valuation, I was cautiously optimistic that A123 could maybe meet the growth expectations baked into the cake, like Google
I'll be back next week with my findings. In the meantime, take a moment to tell the rest of us what motivated you to either buy or avoid these shares in their first two days of trading in the comments section below.