By Olivia Oran and Nichola Groom
Dec 11 SolarCity Corp, a venture backed
by technology entrepreneur Elon Musk, postponed its initial
public offering on Tuesday, according to an underwriter and a
The San Mateo, California-based company had intended to sell
10.1 million shares at a price underwriters hoped to set between
$13 and $15. Some investors have questioned whether the solar
panel company deserves the roughly $1 billion valuation.
A representative for SolarCity was not immediately available
The clean technology sector has suffered some recent
high-profile flameouts with the bankruptcies of solar company
Solyndra and battery maker A123 Systems. SolarCity was promoted
as the most promising alternative energy IPO candidate since the
debut of Musk's electric car company, Tesla Motors Inc,
Musk is SolarCity's chairman and the first cousin of its
co-founders, Lyndon and Peter Rive. In a regulatory filing last
week, he said he planned to buy $15 million of SolarCity stock
in the IPO.
Google Inc and U.S. Bancorp have helped
finance some SolarCity projects, but investors said that
determining an IPO price was challenging because there are few
publicly traded direct competitors with which to compare it.
At the proposed pricing range, SolarCity would have been the
second-most valuable U.S.-listed solar company behind First
SolarCity's venture capital backers include Draper Fisher
Jurvetson, DBL Investors, Mayfield Fund, Shea Ventures and Valor
Underwriters picked for the IPO include Goldman Sachs
, Credit Suisse and Bank of America Merrill Lynch
The company's shares were scheduled to begin trading on the
Nasdaq on Wednesday under the ticker "SCTY."