IPO Shows Appetite for Green

A123 Systems Inc (AONE), a lithium-ion battery maker, jumped 50% over the IPO price on its first day of trading yesterday. Shares were sold at $13.50 and closed over $20 on their debut.

The initial jump gives the company a market capitalization of $1.9 billion. This is clearly a highly speculative valuation for a company that has yet to turn a profit. Investors are showing a strong appetite for a piece of the green industry given its potential.