SolarCity Corp (SCTY) shares jumped 47% in two days following it’s 12 December IPO which raised $92m. The offer price valued the company at $585m.
SolarCity installs solar systems on customers rooftops and sells them the electricity at a price 10%-15% lower than from a utility company. SolarCity says it has provided systems for more than 45,000 buildings in 14 states.
The California based company headed by Elon Musk had originally hoped to raise $151m in the IPO. However pressure from investors led to a lower offer price of $8 from an original range of $13 – $15. The number of shares offered increased from 10.1m to 11.5m representing 16% of the company.