This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Green Energy Winners: Solazyme

NEW YORK ( TheStreet) -- Biofuels company Solazyme (SZYM - Get Report) priced its initial public offering at $18 on Thursday night, higher than the $15 to $17 range set by the green energy company, and in a larger-than-expected share offering.

Solazyme offering just under 11 million shares in the IPO, one million shares more than previously anticipated for the offering.

Before the pricing, the IPO expectations for Solazyme had already doubled from the original goals of the company, which estimated a $100 million offering. The Solazyme deal raised roughly $197 million, above the $184 million which had been expected. Up to 1.6 million Solazyme shares may still be offered in an overallotment period.

The question for investors now turns to whether Solazyme shares are a post-IPO buy. TheStreet recently explored the issue of a post-IPO pop for the green energy stock, versus the long-term investment opportunity and risks in a green energy technology far from large-scale commercial adoption.

Two biofuels company peers that went public in the past year have surged post-IPO: Gevo (GEVO - Get Report) and Amyris (AMRS - Get Report).

Solazyme shares were, in fact, up another 3% after its IPO pricing, above $21 per share on Friday.

Solazyme has several high-profile research ventures with the corporate elite in the fuel, chemicals and consumer markets, including backing from Chevron (CVX - Get Report), Dow Chemical (DOW - Get Report) and Unilever (UL).

The energy IPO market played out according to plan this week, with the buzz surrounding the Solazyme deal leading to the better-than-expected pricing. Solazyme was the energy IPO of the week. Meanwhile, a controversial Chinese renewable energy company, Nobao Renewable Energy, scrapped its IPO on Friday, after a week during which several media outlets, including TheStreet questioned the company's technology .

U.S. exploration and production company Forest Oil (FST - Get Report) also this week spun off its Canadian assets, Lone Pine Resources (LPR - Get Report), but Lone Pine priced below its expected range and traded down in its first day of trading on Thursday.

-- Written by Eric Rosenbaum from New York.

RELATED STORIES:







>To contact the writer of this article, click here: Eric Rosenbaum.

>To follow the writer on Twitter, go to Eric Rosenbaum.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LPR $0.09 0.00%
FST $0.20 -4.76%
GEVO $3.16 0.00%
AMRS $2.01 0.00%
CVX $104.89 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs