CORRECTED-Battery maker Northvolt in talks to hire IPO banks -sources

(Corrects to read 'has used the money from convertible bonds' (not 'has refinanced its convertible bonds'), paragraph 7) By Anirban Sen and Supantha Mukherjee Feb 16 (Reuters) - Northvolt, the Swedish lithium-ion battery producer that counts BMW and Volkswagen among its investors, is close to hiring banks for an initial public offering that could value it at more than $20 billion, according to people familiar with the matter. Northvolt, which last raised funding from investors at a valuation of $12 billion in 2021, is expected to tap Goldman Sachs Group and Morgan Stanley to lead a stock market launch, the sources said. The Swedish company is discussing listing its shares either in Europe or in New York within the next 12 months, the sources said, cautioning that the plans are tentative and subject to change.

The sources requested anonymity to discuss details of the IPO preparations. Northvolt did not immediately respond to a request for comment. Northvolt's stock market debut would come in an IPO market that has gradually recovered from a major slump in 2022, which was driven by stock market volatility and fears of an economic slowdown. Several big companies, including SoftBank-backed chipmaker Arm Holdings and social media firm Reddit, are also preparing to go public in late 2023.

Northvolt has so far raised billions in debt to fund its factory investments, including a $1.1 billion raise last year in convertible notes. Building such facilities is a costly undertaking, highlighted last month by the collapse of Britishvolt, after the Northvolt peer failed to to raise funds for an electric vehicle battery factory.

Northvolt has used the money from convertible bonds to increase liquidity and ramp up production at its gigafactory in Skelleftea, Sweden. Northvolt has raised about $8 billion in debt and equity to date from a wide range of investors, including Baillie Gifford and Folksam Group.
(Reporting by Anirban Sen in New York and Supantha Mukherjee in Stockholm; Editing by Lincoln Feast)

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CORRECTED-Battery maker Northvolt in talks to hire IPO banks -sources

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