- FirstWind Holdings - WIND
- Lead Underwriter -- Credit Suisse
- 12 million common shares
- Current price range -- $24 to $26
- Deal size to the mid-range -- $300 million
- Sector -- energy, alternate sources
Successful investing in initial public offerings is like anything else -- you usually have to be in the right place at the right time to do well. FirstWind Holdings is a growing company trying to raise a $300 million life-line in hopes of eventually becoming profitable, but its window for getting such a risky deal done is probably gone with the wind. FirstWind is a builder and operator of wind energy products with three geographic segments in the United States. It has targeted the Northeast, Rocky Mountain West, and Hawaii, all markets with relatively high electricity prices and strong wind that can be generated at low cost.
While there is no way of accurately forecasting what the success of long-term investments in making wind energy economically viable will be, we do have a sense of the markets appetite for risk. With that in mind, we expect the company to have a hard time persuading investors to throw up a Hail Mary pass and are recommending alternative offerings with more visible growth expectations.