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(Reuters) - Shares of TerraForm Power Inc (TERP.O), created by SunEdison Inc SUNE.N to own and operate its solar power plants, rose as much as 35 percent in their market debut, valuing the company at about $3.2 billion.
TerraForm Power's IPO raised about $502.5 million after the offering of 20.1 million shares was priced at $25 per share, at the higher end of its expected price range.
The company's shares opened at $33.36 and rose to a high of $33.70 on the Nasdaq on Friday.
TerraForm will operate as a "yield co" – a way for solar companies to bundle existing solar power plants and spin them off.
Yield cos own and operate solar assets under long-term power-purchase agreements with utilities and any cash generated is paid out as dividends, with the remainder being re-invested in new plants.
Goldman Sachs & Co Barclays and Citigroup were lead underwriters to the offering.
Reporting By Neha Dimri in Bangalore; Editing by Savio D'Souza