Brookfield eyes IPO for battery maker Clarios

Clarios International is aiming for a valuation of up to US$10.7 billion in its U.S. offering, it said on Tuesday, as the Brookfield Asset Management-backed battery maker looks to tap into a red-hot IPO market.

Milwaukee, Wisc.-based Clarios will sell nearly 88.1 million shares between US$17 and US$21 each, which would rake in US$1.85 billion at the top end of that range.

On a fully diluted basis, which includes mandatory convertible preferred stock, Clarios would be valued at US$11.2 billion at the maximum price target.

The company, which Reuters earlier reported could be valued at up to US$20 billion, had confidentially filed for a listing in May.

Clarios products are used in more than 140 countries, with a third of cars on the road globally using its batteries, according to its website.

The company had revealed that its revenue dropped 11 per cent to US$7.6 billion for the year ended Sept.30, 2020, with a net loss of US$399 million as the COVID-19 pandemic dented demand. It had reported a profit of US$25 million a year earlier.

Brookfield bought Clarios in 2019 from Johnson Controls International, a maker of digital solutions for buildings, for US$13.2 billion including debt, in one of the biggest deals clinched by the asset manager.

Clarios is also backed by Caisse de dépôt et placement du Québec. Entities affiliated with Brookfield and Caisse will continue to hold 80.1 per cent of shares in Clarios after the offering. Clarios will start trading on the New York Stock Exchange under the symbol “BTRY.”