Tags: SolarCity | IPO | solar | sector

SolarCity Postpones IPO as Solar Sector Struggles

Tuesday, 11 Dec 2012 08:10 PM

Solar panel installer SolarCity Corp has postponed its initial public offering scheduled to price on Tuesday, according to an underwriter and a market source.

The San Mateo, California-based company had intended to price 10.1 million shares at a range of $13 to $15.

It was not immediately clear why SolarCity postponed its offering. A representative for SolarCity was not immediately available for comment.

Although the clean technology sector has suffered some high profile flameouts with bankrupt solar company Solyndra and battery maker A123 Systems, SolarCity had been considered the alternative energy industry's most promising IPO candidate since electric car company Tesla Motors Inc's 2010 debut.

Tesla's founder and chief executive, Elon Musk, is SolarCity's chairman and the first cousin of its co-founders, Lyndon and Peter Rive.

Musk said in a regulatory filing last week that he planned to buy $15 million of SolarCity stock in the IPO.

Some investors have questioned whether the company deserves the roughly $1 billion valuation its backers were hoping for, saying it is difficult to value SolarCity because it has few direct peers among publicly-traded solar companies.

With that valuation, SolarCity would have been the second most valuable U.S.-listed solar company, behind First Solar Inc , which has a market capitalization of more than $2.6 billion.

Companies including Google Inc and U.S. Bancorp have provided funds to finance SolarCity's projects.

SolarCity's venture capital backers include Draper Fisher Jurvetson, DBL Investors, Mayfield Fund, Shea Ventures and Valor Equity Partners.

SolarCity's IPO underwriters include Goldman Sachs, Credit Suisse and Bank of America's Merrill Lynch.

The company was scheduled to trade on the Nasdaq on Wednesday under the ticker "SCTY."

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Solar panel installer SolarCity Corphas postponed its initial public offering scheduled to price on Tuesday, according to an underwriter and a market source.
Tuesday, 11 Dec 2012 08:10 PM
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