Blackstone’s Vivint Plans $371 Million IPO as Solar Demand Rises

Vivint Solar, the rooftop power producer owned by Blackstone Group LP, is seeking to raise as much as $371 million from its initial public offering.

Vivint Solar plans to offer 20.6 million shares at $16 to $18 each, according to a filing today with the U.S. Securities and Exchange Commission. Goldman Sachs Group Inc., Bank of America Corp. and Credit Suisse Group AG are leading the deal.

Vivint, the largest U.S. residential solar installer after SolarCity Corp., is planning to go public as demand surges. Developers installed 792 megawatts of photovoltaic panels atop U.S. homes last year, up 60 percent from 2012, according to the Solar Energy Industries Association. It competes with companies including Sungevity Inc. and Sunrun Inc.

“Residential solar has one massive advantage over big-scale PV: It’s cost-competitive in several states even without federal tax credits,” said Nick Culver, a New York-based analyst at Bloomberg New Energy Finance. “Compared to commercial solar, homeowner PV has proven to be a much more scalable business for developers such as SolarCity and Vivint.”

The company will be listed on the New York Stock Exchange under the symbol VSLR. It’s part of Provo, Utah-based Vivint Inc., acquired in 2012 by Blackstone Group for about $2 billion. It announced plans to go public on Aug. 26.

Copyright 2014 Bloomberg

Lead image: Solar panels via Shutterstock

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