BERLIN: German battery maker Varta Microbattery is expected to launch an initial public offering (IPO) in Frankfurt this week to raise cash for expansion and may list by late November, people close to the matter told Reuters.
Varta Microbattery’s owner, Swiss investor Montana Tech Components, is working with HSBC, Jefferies and an Austrian bank on the flotation, the sources said. One said shares worth 150 million euros to 200 million euros ($165 million-$220 million) could be offered in the IPO.
Representatives of Varta and Montana Tech were not available for comment. Varta specialises in batteries for hearing aids, headphones and wearable consumer electronics, as well as energy storage systems for power generated by solar panels on homes and commercial buildings.
The company had 200 million euros in annual sales last year, with core profit (earnings before interest, tax, depreciation and amortisation) of more than 30 million euros.
Varta expects rapid growth in the coming years, particularly in the energy storage sector as German subsidies for the sale of renewable energy are phased out and plans to use any IPO proceeds for investment and acquisitions.
