NEW YORK (TheStreet) -- SunEdison (SUNE) is having a rough day on the market in light of its amended filings with Securities and Exchange Commission that reveal the company is selling $250 million in common stock in an impending initial public offering. The move signals that the company is inching closer to separating its semiconductor operations from its more lucrative solar operations.
The spinoff, SunEdison Semiconductor, enters a semiconductor market that did $9 billion in business in 2012 and expects to increase to $12 million by 2017, according to the filing. The company has applied to list its shares on the Nasdaq Global Select Market under the ticker SEMI.
The company also revealed Thursday that it was entering into a deal with Samsung Chemicals for a private placement purchase of $100 million in shares. Per the press release, "SunEdison will purchase from Samsung Fine Chemicals shares representing a 35% interest in SMP, a joint venture between Samsung Fine Chemicals and SunEdison, and SunEdison will contribute those shares to [SunEdison Semiconductor]."
Shares of SunEdison were down 5.6% to $20.27 on Friday.
TheStreet Ratings team rates SUNEDISON INC as a Hold with a ratings score of C-. TheStreet Ratings 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. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."