Sky Solar IPO Reduced By Two-Thirds, Now $48 Million
Sky Solar — the Hong Kong-based energy producer — has reduced its upcoming initial public offering (IPO) of shares by around two-thirds, according to recent reports.
This means that rather than the $138 million valuation reported last month, the initial valuation is now down to $48 million. It should go without saying, but I’ll say it anyways — that’s a very significant reduction.
The news of that rather severe cut is following on the heels of Sky Solar’s recent announcement that it was postponing the trading of its shares in the NASDAQ American stock exchange — which was scheduled to begin last week.
This is actually the second time that Sky Solar’s total expected revenue from its shares has been re-evaluated — as per forms filed with the Securities and Exchange Commission earlier this year. According to those, the company was expecting a maximum aggregate offering price of up to $172.5 million.
The company has also reduced the number of American Depositary Shares that it is planning to sell — from 12.5 million to 6 million. Now in a $7–$8 per share range, as opposed to $10–$12 per share range.
Sky Solar has also, reportedly, changed its underwriter for the IPO — which is now Roth Capital Partners (previously a co-manager on the deal), as opposed to FBR Capital Markets and Cowen &Company.
Interesting developments. Keep an eye out. IPO’s are always something of a toss-up in many regards, but this development does raise questions about the company’s future plans. Worth taking it into account — especially, of course, if you’ve had an eye on the IPO.
Image Credit: Sky Solar
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