initial public offerings (IPOs) trading on American exchanges

Thursday, December 13, 2012

SolarCity (SCTY) IPO rises 47% from reduced price

  • Shares of SolarCity, the solar energy company backed by entrepreneur Elon Musk, jumped nearly 50% on their first day of trading Thursday.
  • The stock soared 47% above its $8 IPO price to close at $11.79.
  • The company, which sets up financing for individuals and companies to install solar equipment, raised $92 million from its IPO — it sold 11.5 million shares at the $8 IPO price. That was a bit of a downgrade from the 10.1 million shares it expected to sell for between $13 and $15 a share.
  • SolarCity is just the latest company for Musk to bring public. His electric car company, Tesla Motors, on June 28, 2010 raised $226 million by selling 13.3 million shares at $17 a share. Shares of that company now trade for $35.05.
  • Musk is also founder of SpaceX, the aerospace company that is launching low-cost rockets into space, seen as a economical alternative to the pricey near-orbit systems previously operated by the U.S. government.
SolarCity executives and employees ring the opening bell on the Nasdaq Stock Exchange

SolarCity Corp. (SCTY) traded at $11.79 a share for a gain of 47%  over its $8 price in its initial public offering on Thursday. The IPO from San Mateo, Calif., installer of solar power systems raised $92 million by offering 11.5 million shares of common stock.

Earlier this week, SolarCity cut the price of the deal from its estimated range of $13 to $15 a share. Solar City also increased the size of the IPO from 10.07 million shares. Elon Musk, the chairman of SolarCity's board, planned to buy 1.88 million shares in the deal at the IPO price, the company said in a filing with regulators. Goldman Sachs, Credit Suisse and Bank of America Merrill Lynch served as representatives of the underwriters and joint book-running managers for the offering.

** 2 months later **

No comments:

Post a Comment