BrightSource Energy, a US-based solar thermal company backed by France-based power equipment company Alstom and US-based power producer Caithness Development, has shelved its flotation on Nasdaq today, citing "market conditions". The company planned to raise between $144.9m and $158.7m, it had said on March 30.
The move comes after Alstom and Caithness Development had agreed to purchase in private placements $65m and $10m, respectively in March, at a price per share equal to the initial public offering price. The company has been contacted to find out what the news means for the two investments.
John Woolard, president and chief executive of BrightSource Energy, said: "While we received significant interest from potential investors, the continued market and economic volatility are not optimal conditions for an IPO. As a company, we have consistently made decisions in the best interest of our shareholders, employees and customers, and we will continue to do so. Fortunately, we are in a strong financial position and have the support of world-class investors and partners."
French power equipment maker Alstom became BrightSource’s second-largest shareholder, with 17.8%, after investing $130m in the company’s D and E rounds over the past year.
Venture capital firms VantagePoint Venture Partners and Draper Fisher Jurvetson own 24.9% and 6.7% respectively.
The other members of the E round consortium with less than 5% shareholders include oil majors BP and Chevron’s corporate venturing units and California state pension fund Calstrs.
BrightSource’s stock options granted in 2010 and 2011 with the last two rounds have exercise prices at between $4.26 and $6.79 per share.
BrightSource has also revealed its latest figures and posted a $110m net loss on about $159m in revenue last year.
BrightSource had picked three rival investment banks to lead its planned flotation rather than their peer Morgan Stanley, which owns 10.5% of the company.
Goldman Sachs, Citigroup and Deutsche Bank were serving as co-lead underwriters.