December 11, 2012 6:30 pm EST -SolarCity Corporation(PrivCo Private Company Ticker: SCTYP) has postponed its IPO plans. Initial reports indicate that the company was having trouble collecting investor interest at the $13-15 range, even after reduced IPO size and Elon Musk's precommitment to purchase $15 million worth of shares. SolarCitywas to begin trading on NASDAQ on Wednesday (NASDAQ: SCTY).
PrivCo has learned from IPO investors that the underwriters on SolarCity's IPO began contacting those who passed on the IPO to test interest at a price range of $10-$12/share, below the previous $13-$15 range.
The SolarCity IPO had been expecting to price tonight and begin trading tomorrow, but with no official pricing announcement the IPO will now almost certainly get delayed to later in the week, if it prices at all.
PrivCo's CEO Sam Hamadeh stated: "A delay in IPO pricing past 7 pm EST is either a good sign or a bad sign. A good sign in that it could be an attempt to price above the range and requires circling back to investors with the higher price. A bad sign in that it could be a price cut and/or failure to fill its order book. Clearly in this case, no announcement coupled with investors being asked to submit allocation requests at as low as $10/share isn't a positive development for SolarCity's IPO prospects.
If SolarCity's IPO size and price is reduced sharply, or if the IPO is withdrawn, the development would be a blow to an already hard hit cleantech IPO market this year."
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PrivCo's Summary Of Key Facts On SolarCity's IPO (PrivCo Private Company Ticker: SCTYP)
- Offering Size:10.1 Million shares (99% Primary, 1% Secondary)
- Final Offering Price:Postponed
- Proposed Ticker:NASDAQ:SCTY
- Expected Trading Begins:December 12th, 2012
- Lead Underwriters:Goldman Sachs, Credit Suisse, Merrill Lynch
- Co-Managers:Needham & Company, Roth Capital Partners, LLC
- Use of Funds:General corporate purposes, including working capital, sales and marketing activities, general and administrative matters and capital expenditures. Expansion of business through acquisitions or investments
- Revenue (Year end December 31):$59.6M (2011), $32.4M (2010), $32.6M (2009)
- TTM Revenue (Sept. 30, 2012):$124.1M
- 1 Year Revenue Growth:83.6%(2010-2011)
- 3 Year Revenue Growth (CAGR): 22.8%(2008-2011)
- Net Loss:-$73.7M (2011), -$47.1M (2010), -$22.7M (2009)
- Cost of Sales: $47.1M(2011)
- Operating Expenses: $73.7M(2011)
- Total Debt:$106.4M (As of September 30, 2012)
- Total Financing Obligations:$162.3M (As of September 30, 2012), $68.1M (2011)
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