SolarCity to price IPO not today but tomorrow - report

Dec 12, 2012 - US solar system developer SolarCity has put off the pricing of its planned initial public offering (IPO) on the Nasdaq Global Market till tomorrow, Bloomberg said today, citing sources in the know.

At the end of November the company unveiled plans to sell some 10.06 million shares in the range of USD 13-USD 15 (EUR 10-11.5) apiece, with the pricing planned for today. The midpoint of that range values the company at USD 1 billion or, as Bloomberg calculates, eight times its sales for the 12 months to end-September 2012.

US-based Goldman, Sachs & Co, part of Goldman Sachs Group Inc (NYSE:GS), Swiss lender Credit Suisse (NYSE:CS), US-based BofA Merrill Lynch and US investment banks Needham & Co and Roth Capital Partners are serving as underwriters to the IPO. They have been granted an option to buy up to an additional 1.5 million shares in SolarCity within 30 days from the date of the filing.

When it announced plans to list, the downstream company said it had seen significant benefits from the recent decline in solar panel prices, which had affected panel makers and upstream companies. This, coupled with strong demand for retail electricity in the US and increasing electricity prices, present a good market opportunity for SolarCity, it added.

(USD 1 = EUR 0.769)

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