NEW YORK CITY -- SolarCity Corp., the solar power provider led by billionaire Elon Musk, cut the proposed pricing of its initial public offering while increasing the number of shares offered.
The San Mateo, California-based company sees a price of $8 each after increasing the size of the offering to 11.4 million shares from 10.1 million, according to a regulatory filing. The IPO had been scheduled to price yesterday in a range of $13 to $15 apiece.
Buyers in SolarCity’s IPO commanded a discount even as the company is poised for growth after completing the most equipment installations in California, the U.S.’s biggest solar-power market. The offering is contending with a market that has pummeled public solar stocks and a pending U.S. government inquiry into its accounting practices that may raise costs.
SolarCity, which booked a $95 million net loss in the 12 months through September, is one of a handful of companies that lease solar panels to customers, install them on their property, and charge them below-market rates for the electricity they generate.
Copyright 2012 Bloomberg
Lead image: Solar installation via Shutterstock