Dive Summary:
- According to Reuters, SolarCity has postponed its IPO not long after it lowered its stock price to a reported $10 per share from a range of $13 to $15.
- The company had hoped to sell 10 million shares of its stock in its initial offering and raise $201 million
- These estimates were optimistic, however, as only 65,012 shares were sold by stockholders.
From the article:
Like BrightSource Energy, another solar firm, albeit in vastly different sectors -- institutional investors were having none of the high valuations anticipated by these VC-funded startups. If you're selling electrons like SolarCity or BrightSource Energy, then you get valued like a conventional power generator, not like a consumer gadget. ...
