The company's owner, investment firm Infestos, is working with ABN Amro (>> ABN AMRO Group) and Barclays (>> Barclays) to organise the flotation as global coordinators, they added.
The firm may be valued at 500 to 600 million euros (£440.6-528.6 million) in a flotation, one of the people said.
Infestos, Alfen and the banks declined to comment or were not immediately available for comment.
Alfen, founded in 1937 as a maker of high- and low-voltage equipment, diversified into electronic car charging stations in 2007 and into large-scale batteries in 2013. The energy storage systems provide utilities with a means to help balance supplies from intermittent solar and wind power production.
Alfen was part of construction group TBI from 1971, which sold the company to Infestos in 2014.
According to an undated page on Infestos's website, Alfen has 250 employees and about 100 million euros in annual revenue.
According to documents from the Dutch chamber of commerce, Alfen had earnings before interest and taxes of 2.2 million euros and a net profit of 1.6 million in 2016.
(Reporting by Dasha Afanasieva and Bart Meijer; Editing by Greg Mahlich)
By Dasha Afanasieva and Bart H. Meijer