NEW YORK (TheStreet) -- Solar semiconductor company SunEdison (SUNE) is soaring on Tuesday after announcing it had confidentially filed an S-1 to publicly issue shares of an anticipated solar project.
"The number of shares of common stock to be sold and the price range for the proposed offering has not yet been determined. The initial public offering is expected to commence after the SEC completes its review process, subject to market and other conditions," the company said in a statement.
In November last year, CFO Brian Wuebbels said the company planned to sell a 20% to 30% stake in a solar subsidiary through an initial public offering. The offering was predicted to raise around $300 million to be reinvested in new projects.
By early afternoon, shares had added 7.2% to $15.24, and trading volume of 13.8 million had exceeded its three-month daily average of 10.2 million.
TheStreet Ratings team rates SUNEDISON INC as a Hold with a ratings score of C-. The team has this to say about their recommendation:
"We rate SUNEDISON INC (SUNE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."