Thursday, December 13, 2012

After Price Cut Elon Musk's SolarCity Trades, Soars (SCTY)

The stock was priced at $8.00, down from the $13-15 range the underwriters were throwing out earlier this week.
It is currently trading at $11.60, up 45%.
From earth2tech GigaOm cleantech:

SolarCity’s stock soared by up to 40 percent in morning trading, after being reduced significantly in recent days. It debuted at a $9.25 per share price, up from a pricing of $8 per share. Does the bellwether IPO indicate Wall Street is OK will clean energy stocks again?

Solar panel installer and financier SolarCity started trading at $9.25 on Thursday morning, and rose up over 40 percent at one point to $11.20 by 12:15 (EST). The company priced its initial IPO at $8 per share, and had reduced the price in recent days from an estimated range of $13 to $15 per share.

The early rise is good news for SolarCity’s investors. The investors, including co-founder Elon Musk, Draper Fisher Jurvetson and DBL Investors, agreed to buy up about a third of the float the day before trading. If the stock can stay up substantially they’ll make a nice profit off of the shares they bought at $8 per share. However, when a small amount of insiders own a substantial amount of the stock, it can get tricky if they want to cash out after the lock-out period (typically 6 months)....MORE
UPDATED--Coming Up: Elon Musk’s SolarCity Seeks IPO Multiple of 19 Times Peers Tomorrow
"SolarCity postpones initial public offering, according to report" (SCTY)