By Arno Schuetze

FRANKFURT, June 14 (Reuters) – German battery group BMZ is
preparing for a Frankfurt stock market listing as early as
September with a targeted valuation of about 2 billion euros
($2.4 billion), sources close to the matter told Reuters.

The plans have been forged as battery makers scramble to
keep up with demand as the automotive industry and other sectors
switch to electric to reduce planet-warming carbon emissions,
raising investor interest in pioneering battery businesses.

BMZ is working with Citi, JP Morgan and
Berenberg on the initial public offering (IPO), which will sell
shares worth about 500 million euros, the sources said.

“We are continually considering our options”, a company
spokeswoman said.

The banks declined to comment.

BMZ makes battery systems for a winde range of applications,
including e-mobility, forklift trucks, electric bikes,
gardenening tools, medical devices and even for storage of
electricity generated by solar panels and wind turbines.

In 2020 the company posted revenues of about 400 million
euros and expects significant growth this year, catching up on
some projects that were delayed by the COVID-19 pandemic.

The company could be valued at about five times expected
revenue, in line with the valuation of rival Akasol,
which trades at 4.8 times expected sales, two of the sources

BMZ, based in Karlstein near Frankfurt, takes 300 million
battery cells each year to assemble battery systems for
industrial clients such as forklift maker Kion, medical
device maker Philips and gardening tools maker Stihl.
Profitable from the start, BMZ’s annual revenue growth has
averaged 20% over the past 10 years.

Europe’s largest battery system maker was founded by
entrepreneur Sven Bauer in 1994 and now employs about 3,000
staff at seven sites in Europe, the United States and Asia.
($1 = 0.8255 euros)

(Reporting by Arno Schuetze
Editing by David Goodman)