Enphase Energy, a US-based solar company, backed by the corporate venturing unit of Applied Materials, saw a 22.3% pop in its first day of trading after pricing its flotation significantly below a range it initially set last month.
The company raised $53.8m at $6 per share, selling nearly 9 million shares, according to a filing. This was half the top end of a $10 per share to $12 per share range it set in mid-March. In the first day of trading on Nasdaq, under the ticker ENPH, on Friday, the shares popped 22.3% to $7.34 per share at its last after-hour trade. The company subsequently shifted its range lower to between $6 per share to $7 per share.
Enphase has developed a semi-conductor based system which converts direct current electricity to alternating current electricity at the solar module level.
The company had raised $115.2m in convertible preferred stock and convertible notes at December 31, 2011.
The main shareholders in the company are Applied Ventures (6% prior to offering) as well as venture firms Third Point (18.2% before IPO), Rockport Capital Partners (15.5%), Madrone Partners (14.2%), a private investment firm affiliated with Rob Walton and his family, Kleiner Perkins Caufield & Byers (12.5%), and Bay Partners (5.4%).
All the company’s 5% shareholders, except Applied Ventures, bought stock in the initial public offering, with the five other shareholders subscribing for 2.5 million of the shares sold.
The initial public offering is being advised by banks Morgan Stanley, Bank of America Merrill Lynch, Deutsche Bank, Jefferies, Lazard Capital Markets and ThinkEquity, part of financial services group Panmure Gordon.
In 2011 the company made a net loss of $32.3m on net revenues of $139.5m.
The filing said Applied Ventures bought $3.35m of series D and series E stock, while an earlier filing last year said it had invested about $5.5m in Enphase’s series B through to E rounds as well as $2.44m in a convertible loan last month.