Posts Tagged ‘clean tech ipo’

Sounds to me like Tesla is going public. Here is some coverage on the topic from The GreenBeat blog at WSJ Online.

“Rumors are swirling today that Tesla Motors is seriously considering an initial public offering sometime soon. The talk has been tracked to two anonymous sources, who say the six-year-old company could cash in big on the battery-powered car trend before electric and hybrid models from companies like General Motors, Mitsubishi and Nissan make it to market.

Tesla has officially denied the prediction, calling the IPO chatter “rumor and speculation.” That said, going public in 2010 would give the San Carlos, Calif. company several distinct advantages. First, it would solidify its position as the electric car player to watch. It’s already been casually anointed as the leader by industry observers and the Department of Energy, which granted it $465 million in stimulus funds in its first round of low-interest loans for advanced transportation projects. Second, it could use the sale to raise money to get its hotly anticipated Model S sedan out the door by its 2011 due date.

Tesla is one of several cleantech companies anticipated to go public as soon as next year. When A123Systems shocked the market with its blockbuster IPO in late Sepember (its share price jumped 50 percent on opening day), many analysts, including the Cleantech Group, said that the biggest public offerings in 2010 will probably come out of the green sector. In addition to Tesla, solar system maker Solyndra — which received $535 million in loan guarantees from the DOE in March — and smart grid communications provider Silver Spring Networks have also been named as likely candidates.”

Read the full article here.

GigaOm also covers this topic saying:

“Last Friday, buzz about an imminent IPO for electric car startup Tesla Motors hit the Interwebs, courtesy of two anonymous sources familiar with the plans who spoke with Reuters. As in several previous stories about its possible plans for a public offering, the company has declined to comment.

But if and when Tesla goes through with its long-discussed goal of going public, it could be the biggest and possibly the first public offering for a U.S. car company since Ford Motor’s IPO more than 50 years ago. The event will also offer a glimpse at the role IPOs will play in the nascent green car market — is the classic venture capital model (invest early and find a big exit in the form of an acquisition or an IPO) viable for this sector, or will a green-car IPO be more about feeding big capital needs and branding?

Hopes for a Google-like moneymaker in cleantech (Google took only $25 million in venture capital to make millionaires of 1,000 employees and billionaires of its two co-founders in a wildly successful IPO) have already started to fade for some in the sector. Stephan Dolezalek, managing director of VantagePoint Venture Partners, which has invested in Tesla, told Reuters in September that public offerings now serve more as “financing events” for alternative energy and other cleantech startups rather than a way for investors and founders to cash in on equity.”

Read their version here.

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Here is a cleantech story by way of Bnet.

“Hours ahead of battery maker A123 Systems‘ initial public offering, optimism is already running high that the company will crack open a stagnant market and convince investors that they should also buy into other stock offerings.

A123 made an 11th-hour call yesterday to raise the price its opening price by 23 percent, to a range of $10 to $11.50. If the company gets traction it will bring in about $250 million. That’s not bad, for a firm that lost $40.7 million in the first half of the year. Its revenue was only slightly higher, at $42.9 million.

But A123 is well positioned. It started off selling batteries into the power tool market. That led to electric cars — which are not yet common on the road, by any means. The expectation is that electric vehicles will multiply rapidly in coming years; even if they don’t, A123 is also starting to make batteries for utilities, to store excess capacity from solar or wind power farms.

Battery technology also takes a long time to perfect, meaning newer competitors could take years to catch up to A123, offering some stability. So as startups go, it’s a good company to attract attention from the stock markets during a protracted downturn. The question is whether others can follow in A123’s footsteps.

I’d say “yes”, and here’s why: Investors seem to be wising up to what actually works in cleantech. When A123 first filed for an IPO last year, it was in a group of other renewable energy companies, including Imperium Renewables, a biodiesel maker. That company burned through a massive amount of cash very quickly, and is now in no position to have an IPO, or do much of anything else.

Ditto for dozens of other biofuel companies, including corn ethanol busts that did go public, like Verasun and Pacific Ethanol. But, as with the internet boom, all this simply meant that investors were still getting their bearings. It wasn’t yet evident which areas of cleantech would make for the best bets.”

Read the full story here.

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