February 16 (Reuters) – Northvolt, the Swedish lithium-ion battery maker that counts BMW (BMWG.DE) and Volkswagen (VOWG_p.DE) among its investors, is on the verge of hiring banks for an initial public offering (IPO). , which could value the company at more than $20 billion, four sources close to the matter told Reuters.
The company, which last raised funds from investors in 2021 at a valuation of $12 billion, is expected to attract Goldman Sachs Group (GS.N) and Morgan Stanley (MS.N) to an IPO, the sources said .
Northvolt is considering listing its shares in Europe or New York within the next 12 months, the sources said, warning that plans are preliminary and subject to change.
The sources asked for anonymity to discuss details of preparations for the IPO.
Northvolt has raised approximately $8 billion in debt and equity to date from a variety of investors including Baillie Gifford and Folksam Group.
“We will need more capital in the future and we take it for granted to be prepared for an IPO in the future, but such a transaction is not relevant in current markets today,” said a Northvolt spokesman.
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The potential stock sale would come in an IPO market that is gradually recovering from a 2022 slump caused by stock market volatility and fears of an economic slowdown.
Several large companies, including SoftBank-backed chipmaker Arm Holdings and social media company Reddit, are also preparing to go public in late 2023.
Northvolt has so far borrowed billions of dollars to fund its factory investments, including $1.1 billion raised in convertible bonds last year that have helped it increase liquidity and ramp up production at its Gigafactory in Skelleftea, Sweden, power up.
Building such plants is a costly endeavor highlighted last month by Britishvolt’s collapse after it failed to raise funds for an electric vehicle battery factory.
Reporting by Anirban Sen in New York and Supantha Mukherjee in Stockholm; Adaptation of Lincoln Feast
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