Bloomberg News

SolarCity Said to Delay Initial Public Offering to Tomorrow

December 11, 2012

SolarCity Corp. (SCTY:US) delayed the pricing of its initial public offering until tomorrow, said two people with knowledge of the situation.

The people asked not to be identified because the process is private. The San Mateo, California-based solar-power provider led by billionaire Elon Musk is offering 10.1 million shares for $13 to $15 apiece, according to regulatory filings (SCTY:US).

The IPO had been scheduled to price today. The midpoint of the offering range would value the company at about $1 billion, or about 8 times sales in the 12 months through September. That compared with an average price-to-sales multiple as of yesterday of about 0.4 for publicly traded companies such as Real Goods Solar Inc. (RSOL:US) and First Solar Inc.

While Musk may be aiming to replicate the performance of his Tesla Motors Inc. (TSLA:US), which has more than doubled since its 2010 IPO, SolarCity is contending with a market that has pummeled public solar stocks and a pending U.S. government inquiry into its accounting practices that may raise costs.

SolarCity, which booked a $95 million net loss in the 12 months through September, is one of a handful of companies that lease solar panels to customers, install them on their property, and charge them below-market rates for the electricity they generate.

The company, co-founded by Musk’s cousins Lyndon and Peter Rive, is also backed by venture-capital firm Draper Fisher Jurvetson, which will hold a 21 percent stake after the IPO, filings show.

Goldman Sachs Group Inc., Credit Suisse Group AG and Bank of America Corp. are leading SolarCity’s IPO. The stock will be listed on the Nasdaq Stock Market under the symbol SCTY.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net


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Companies Mentioned

  • SCTY
    (SolarCity Corp)
    • $54.8 USD
    • 1.05
    • 1.92%
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