Northvolt, a Swedish lithium-ion battery manufacturer, is reportedly close to hiring banks for an initial public offering (IPO) that could value the company at more than $20 billion. Sources close to the matter informed Reuters that Northvolt, which counts BMW and Volkswagen among its investors, is expected to tap Goldman Sachs Group and Morgan Stanley to lead a stock market launch.
The company is said to be discussing listing its shares in Europe or New York within the next 12 months. However, the sources have cautioned that the plans are tentative and subject to change. Northvolt last raised funding from investors at a valuation of $12 billion in 2021.
See also: Northvolt announced Lithium-ion cell battery first production
To date, Northvolt has raised about $8 billion in debt and equity from a wide range of investors, including Baillie Gifford and Folksam Group. However, the company will require more capital going forward, according to a spokesperson. Northvolt has so far raised billions in debt to fund its factory investments, including $1.1 billion raised last year in convertible notes that have helped it to increase liquidity and ramp up production at its gigafactory in Skelleftea, Sweden.
Building such facilities is a costly undertaking, as highlighted last month by the collapse of Britishvolt after it failed to raise funds for an electric vehicle battery factory. The potential share sale from Northvolt comes in an IPO market that is slowly recovering from a 2022 slump driven by stock market volatility and fears of an economic slowdown.
