Solar Energy Company Sunrun Files for IPO

U.S. solar energy company Sunrun Inc on Thursday filed with U.S. regulators for an initial public offering of its common stock.

 

Credit Suisse, Goldman Sachs & Co and Morgan Stanley (MS) were among the underwriters for the IPO, the company told the U.S Securities and Exchange Commission in a preliminary prospectus. (http://1.usa.gov/1GKUOoC)

 

Sunrun, which installs and maintains solar panels for homes, has about 79,000 customers across 13 states, as of March 31.

 

Another clean energy company SolarCity Corp, backed by Tesla Motors Inc founder Elon Musk, has seen its shares rise more than seven-fold since their debut in 2012.

 

The residential solar market in the United States has grown dramatically in recent years, largely due to cheap prices for panels, particularly those made in China.

 

President Barack Obama's fiscal 2016 budget proposes a boost in funding for clean energy by 7 percent and a new $4 billion fund to encourage U.S. states to make faster and deeper cuts to emissions from power plants. (http://reut.rs/1K3empm)

 

Sunrun's filing, which included a nominal fundraising target of about $100 million, did not reveal how many shares the company planned to sell or their expected price.

 

Sunrun, which intends to list its common stock on the Nasdaq under the symbol "RUN," listed venture capital firms Foundation Capital, Accel Partners and Sequoia Capital among its major shareholders.

 

The net proceeds from the offering will be used for general corporate purposes, including working capital and capital expenditures, Sunrun said.

 

The company's net loss more than doubled to about $162.6 million in 2014 from 2013, while total revenue almost quadrupled to $198.6 million.

 

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.