After announcing the pricing of its IPO on Tuesday, US-based residential solar provider Sunrun hit its target, raising $251 million on its first day of trading on Wednesday.
Sunrun announced pricing for its IPO of 17,900,000 shares of common stock on Tuesday, a day before the shares were set to begin trading on the NASDAQ stock exchange under the ticker symbol “RUN.”
Specifically, Sunrun revealed that a total of 17,482,268 shares were being offered by Sunrun and a total of 417,732 shares were being offered by certain selling stockholders.
By the end of trading on Wednesday, Sunrun can say that it successfully raised nearly $251 million by selling its 17.9 million shares, for an initial market cap of around $1.36 billion.
“The Sunrun IPO is another hugely significant step in our transition from a 20th century fossil-fuel energy economy to a 21st century world dominated by clean energy,” said Nancy Pfund, founder of DBL investors, quoted by Greentech Media. “Accessing the public markets is critical to the growth of the solar industry, allowing companies to raise funds to invest in growth, novel product development, acquisitions (as we saw today with SolarCity’s purchase of ILIOSS), policy leadership and geographic expansion.”
But despite the fact that Sunrun hit its target, its shares failed to maintain any traction. Trading opened at $13.06 per share, down on the company’s expected $14 per share, and dropped even further, rubbing noses with $10 a share as I am writing this.
Sunrun is one of the largest residential solar installers in the US, listed by GTM Research as 4th in 2014. However, its percentage was well behind the first two companies, SolarCity and Vivint Solar, which together dominate the home solar market in the US.
Image Credit: @SunRun
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