First Wind had predicted it would get $24 to $26 a share, but yesterday said it expected to sell 12 million shares in the range of $18 to $20 each. A share price in the middle of the new range would reduce the IPO proceeds by $72 million.
Reuters reported on Thursday morning that the First Wind IPO had been delayed, citing an anonymous underwriter. A decision on going ahead with the First Wind IPO is pending.
First Wind's road to being a public company has not been an easy one. In fact, the company filed plans to go public with the Securities and Exchange Commission as far back as 2008, when the U.S. wind market was in a much better position than it has been for much of 2010. At the time of its original IPO filing, First Wind was in a cash crunch.
(BWEN) shows, down 78% this year among a nadir in the U.S. wind market project market. With the cash grant program that had spurred the development of many alternative energy projects set to end this year, and the base of tax equity investors available to fund alternative energy projects in 2011 using the old investment tax credit approach much debated, the outlook for the U.S wind market remains tenuous.
(MY) completed its IPO, though it priced at the bottom of its estimated range of $14 to $16. The 25 million shares Ming Yang Wind Power IPO raised $350 million. Shares of Ming Yang have since fallen to $10. In the broader alternative energy IPO context, Chinese offerings have been the recent successes, if they can be called successes pricing at the low-end of the IPO range on more than one occasion. China's Jinko Solar (JKS) also priced at the low end of its IPO range when it went public, and fell to a level below the IPO price shortly after its May offering. However, with the strength in the solar market since July, Jinko Solar shares have climbed from $10 to $30. -- Written by Eric Rosenbaum from New York.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV