FRANKFURT, June 27 (Reuters) - German battery systems maker Akasol said it priced its stock market listing at the bottom of an indicative price range, at 48.50 euros ($56.08) apiece, reaping 100 million euros from the deal.
Akasol is planning to use the proceeds from the initial public offering to double production facilities at its German site Langen by 2020, set up a greenfield factory in the United States and build a research and development plant near its Darmstadt headquarters.
Car industry experts have predicted a so-called “tipping point” in about 2025 for electric car battery demand following major investments in zero-emissions vehicles and as battery production costs fall and their driving range increases.
But the high cost of batteries means that electric cars have yet to grow beyond their market niche. Only about 870,000 new electric vehicles (EVs) were produced worldwide in 2016, a year when 77.7 million new passenger cars were made.
Akasol, initially set up in 1990 and incorporated in 2008, makes battery systems for buses, commercial and industrial vehicles as well as locomotives and ships. It buys lithium cells and adapts them to systems which are used by bus makers Daimler and Volvo among others. ($1 = 0.8649 euros) (Reporting by Arno Schuetze in Frankfurt and Rama Venkat Raman in Bengaluru; editing by Diane Craft)