The Swedish company Northvolt, which will build a mega battery factory in Montérégie, is considering an IPO next year with a valuation expected to hover around US$20 billion, reports the Financial Times.
The manufacturer has asked investment banks to propose different scenarios for a possible IPO, writes the British financial daily, which specifies that the investment bank Rothschild & Co recently advised the battery manufacturer in its preliminary steps to become public.
Founded in 2017 by two former Tesla executives, Northvolt would consider an IPO as early as 2024 if stock market conditions are favorable.
Northvolt must attract investment in order to finance the construction of numerous factories. In addition to those existing in Sweden, the group confirmed this spring the construction of a mega-factory in Germany.
In September, Northvolt outlined its desire to develop the North American market with the announcement of a battery cell factory in McMasterville and Saint-Basile-le-Grand, near Montreal.
The European solution
Considered the European solution to Chinese battery manufacturers, Northvolt has an order book valued at more than $55 billion. The company’s customers include manufacturers such as BMW, Scania, Volvo and Volkswagen.
It has raised more than US$9 billion in debt and equity since its inception.
In its most recent round of financing, Northvolt raised nearly US$1.2 billion from investors, including BlackRock, but also from major Canadian pension plans, such as the Canada Pension Plan and the Canadian Pension Plan. retirement of Ontario municipal employees.
Northvolt would consider listing on the Swedish Stock Exchange rather than high-profile stock markets like those in London, Berlin or New York. A choice that does not surprise Pierre-Olivier Langevin, partner and portfolio manager at Medici.
A stock market listing is similar to an auction, he says: “At the beginning, there is a big road show [soit une tournée auprès d’investisseurs potentiels]. » The value of the share is established according to “the highest bidding investors”.
Northvolt is well known in Europe and Scandinavia, recalls Mr. Langevin. “Generally, businesses like to be listed where they are known. People who are familiar with this company and who would be likely to participate in the IPO are there. »