UPDATE 3-Solar inverter maker Enphase soars on market debut
By Ashutosh Pandey
March 30 (Reuters) - Solar inverter company Enphase Energy's shares rose by more than a third on their debut as the company managed to attract investors with a deep cut in its price range.
Shares of Enphase opened up 25 percent at $7.50 on the Nasdaq on Friday, after the company priced its initial public offering at the low end of its already reduced price range.
The company had nearly halved its pricing range to $6 to $7 a share from $10 to $12 a share two days before it went public.
Investors are attracted by the 46 percent cut in the offer price and Enphase's strong revenue generation, said Francis Gaskins, a partner at IPODesktop.com.
"But sooner or later you will have to earn money," he said. "Solar industry is dependent on subsidies and government mandates. Economically, they do not make sense."
The Petaluma, California-based company, which raised about $54 million from the IPO, has posted net losses each year since its inception.
Enphase Energy's debut caps one of the busiest IPO weeks on Wall Street in over a decade, which saw eight companies go public.
The company, which is backed by Third Point LLC and RockPort Capital Partners, sells microinverters that turn direct current from solar panels into alternating current that can be fed into household power systems.
Morgan Stanley, BofA Merrill Lynch and Deutsche Bank acted as the lead underwriters for the offering.
Shares of the company closed up 22 percent at $7.34 on Friday on the Nasdaq.
- Deadly gun attack in eastern Ukraine shakes fragile Geneva accord |
- Japan expands army footprint for first time in 40 years, risks angering China
- Pfizer considers $100 billion bid for AstraZeneca: report
- Prosecutors extend Korea ferry captain's detention as death toll mounts |
- Rubin 'Hurricane' Carter, U.S. boxer famous in folk song, dies at 76