Sky Solar, the China-based solar energy producer backed by IDG-Accel, cut the maximum size of its planned initial public offering from $150m to $55.2m yesterday.
Sky Solar set the range for the IPO between $10 and $12 per American Depositary Share (ADS) two weeks ago and planned to raise up to $150m issuing 12.5 million shares. The company was expected to float on Nasdaq last Friday, only to suspend the IPO citing poor market conditions.
Clues to those conditions can be found in Sky Solar’s financial results. It made a $53.9m loss in 2013 from revenues of about $36.5m, after changing its business model from a solar project developer to an independent power producer.
The IPO will now go ahead, with the company issuing 6.9 million ADSs priced at $8.00 each.
IDG-Accel, the joint venture between media and data company International Data Group and venture capital firm Accel Partners, is Sky Solar’s second shareholder, owning a 24.2% stake in the company.