On September 21 I wrote that if the initial public offering for battery maker A123 Systems turned hot, it would enable a wave of private companies locked out of the public markets to finally go public. (See http://jubakpicks.com/2009/09/21/the-ipo-window-opens-and-battry-maker-a123-systems-gets-set-to-jump-through/ .)
Well, the A123 Systems IPO was not just hot. It turned red hot.
The offering priced at $13.50. That was well above its expected range of $10 to $11.50, which, was in turn a big increase from the original projections of $8 to $9.
The stock got that higher pricing even though underwriters had increased the offering size to $28.1 million shares from 25.7 million.
Even that increase in supply wasn’t enough to meet demand, I’d say, because when it finally started trading, shares first changed hands at $17 a share. Shares were trading at $19.90 at 2:14 p.m. (ET) as I wrote this.
If that’s not enough to encourage other companies to test the IPO waters, I don’t know what is.