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John Petersen
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John Petersen is the executive vice president and chief financial officer of ePower Engine Systems, Inc., a Kentucky-based enterprise that has developed, built and demonstrated an engine-dominant diesel-electric hybrid drivetrain for long-haul heavy trucks that promises fuel savings of 25 to 35... More
My company:
Fefer Petersen & Co.
My blog:
ipo-law.com
  • A123 Systems Files Price Range Amendment 7 comments
    Sep 9, 2009 10:58 AM
    This morning A123 Systems filed another registration statement amendment for its planned IPO. The amendment specifies a preliminary price range of $8.00 to $9.50 and a preliminary offering size of 25 million shares (28.85 million shares with over-allotment option). Amendments like today's filing occur during the late stages of an IPO and it's not unusual to see the price range or offering size increase in later filings.

    Both of the preliminary values are about half of what I expected. The price range surprises me because of its rough parity with the $9.20 per share price A123 received in its last private placement. The offering size surprises me because A123 needs to raise significant working capital; needs to raise $250 million in matching funds for the ARRA battery grants it was awarded last month; and needs to raise up to $60 million in matching funds for DOE guaranteed loans it expects to qualify for. If the A123 IPO goes off in the preliminary ranges, it will have an initial market capitalization of $800 to $950 million.

    I have to assume that the initial share price and offering size estimates were fixed at conservative levels because of weak conditions in the IPO market over the last year and uncertain current conditions in the broader market. I sincerely hope that the road show surpasses everyone's expectations. I've been waiting for the A123 IPO since the summer of 2008 and believe that a successful offering will draw attention to the energy storage sector in a way that no other event can.

    Storage sector investors who want to better understand the impact a significant IPO can have on a sector should read Zachary Scheidt's recent Seeking Alpha article, The Stage is Set for an IPO Rebound. Another worthwhile recent article from Forbes.com that discusses the potential impact of the A123 IPO on the energy storage sector is "Battery IPO Could Recharge New Issue Market.
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Comments (7)
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  • Mayascribe
    , contributor
    Comments (9977) | Send Message
     
    No matter what side of the aisle us bat geeks stand on (lith vs lead acid vs fly wheel) let's just hope we all get a porfolio lift. Thanks for the update, John.
    9 Sep 2009, 11:08 AM Reply Like
  • John Petersen
    , contributor
    Comments (30231) | Send Message
     
    Author’s reply » Greentech media just came out with a more detailed story available here:

     

    www.greentechmedia.com.../
    9 Sep 2009, 03:37 PM Reply Like
  • Mayascribe
    , contributor
    Comments (9977) | Send Message
     
    Thanks, John. A123's cash burn rate is frightening. Who do they think they are, Ener1?
    9 Sep 2009, 04:08 PM Reply Like
  • John Petersen
    , contributor
    Comments (30231) | Send Message
     
    Author’s reply » Mayascribe, you're tempting me to do a side by side comparison of the two companies since they'll be sporting similar market capitalizations, but I get criticized every time I talk about the emperor's wardrobe. So get thee behind me ...
    9 Sep 2009, 04:57 PM Reply Like
  • John Petersen
    , contributor
    Comments (30231) | Send Message
     
    Author’s reply » This has just been printed as a main pages article. So please post any additional comments there.
    9 Sep 2009, 04:59 PM Reply Like
  • Mayascribe
    , contributor
    Comments (9977) | Send Message
     
    John: Are you following, per chance...what the eff is going on with this website? I champion SA. And yet they have the audacity to deduct some 150 to 200 plus thumbs up from Mayascribe.

     

    I don't care what colored medallion is next to Mayascribe's name; who I learn from is far more important.

     

    Yet, some 50+ comments I have made have been deleted, tossed into the cyber ocean. You know me better than any cyber-buddy I have here. You know that my thoughts are largely benigh. You know that I'm a stars and stripes flag waiver.

     

    I hope you're following all of this nonsense. I absolutely don't want to be in the middle of all the BS. But, somehow, I am. SA's monitoring decisions are...well...I am lucky enough to have some of the top, top SA comentators backing me. I, honestly, had no idea that SA was/is such an anti-freedom of speech organization.

     

    Don't expect you to pry into this matter, as others have, without even an explanation/answer from SA, as to why they have eliminated or edited some of my investing pals from this "wonderful" website. Somehow...I expect I'm next.

     

    All aspects of this bums me out.

     

    10 Sep 2009, 02:45 AM Reply Like
  • John Petersen
    , contributor
    Comments (30231) | Send Message
     
    Author’s reply » mayascribe, I've had a few instances where I've raised a stink about commenters who went beyond the pale of civil behavior and in those cases the SA message police have been pretty vigilant. That vigilance may be part of your problem. A few weeks back I had a particularly severe problem with a commenter and the message board police asked that I not respond in cases that I find particularly offensive because they try to take out both sides of an argument that decays too far. I know that you've jumped to my defense in several instances and it wouldn't surprise me to learn that some of those defensive comments, which were deeply appreciated at the time, were also deleted with offensive identities.

     

    Do me a favor and drop me a personal e-mail so that we can have this kind of discussion off-line. Use the fefer.petersen@gmail.com address and I'll provide the alternate coordinates.
    10 Sep 2009, 09:22 AM Reply Like
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