After Cutting I.P.O. Price, SolarCity Leaps in First Day of Trading
SolarCity may not have raised as much in its initial public offering than it had once hoped. But at its lowered offering price, the solar power company found more than a few takers.
During the first day of trading, the company’s stock jumped as much as 59 percent. The stock closed on Thursday at $11.79, or 47.4 percent above its offering price of $8. That valued SolarCity at $861 million.
The strong market debut followed a few days of difficulty for SolarCity and its underwriters, none of whom fully prepared for issues in bringing a clean technology company to market.
SolarCity, whose backers include Tesla’s founder, Elon Musk, prides itself on being different from other companies in the solar sector. It finances and installs rooftop solar systems in exchange for long-term monthly payments from its customers and prefers to think of itself as an energy company, rather than just a solar company. The solar leases typically run 20 years.
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