By Ashutosh Pandey
March 30 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
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
Enphase Energy's debut caps one of the busiest IPO weeks on
Wall Street in over a decade, which saw eight companies go
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.