With so few traditional public offering exits in cleantech, we get really excited when a company starts making moves with the SEC to prepare for an IPO. Yesterday the residential solar installer Real Goods Solar updated its SEC filings with price information for its IPO, valuing itself, based on the number of outstanding shares after the offering, at $165 million.
The Broomfield, Colo.-based company plans to list on the Nasdaq Global Market under the ticker “RSOL.” It expects to offer 5 million shares priced at between $10 and $12 each, raising, after fees and other costs, $49.1 million.
Real Goods Solar is hardly a young startup. It was founded in 1978 and claims to have installed more than 2,400 residential and small commercial solar installations since then. This IPO is the next step in Real Goods Solar’s aggressive expansion plan, which it kick-started by acquiring Marin Solar and Carlson Solar in 2007. Real Goods says it intends to use $19.8 million of the IPO proceeds to pay off debts it incurred during these acquisitions to its parent company, Gaiam.
“I don’t think there’s an unlimited space for these types of IPOs. There might be one or two more. I think the whole industry is consolidating.”
Consolidation is inevitable and will be good for the market. Residential consumers will want recognizable and established names when they hire someone to clamor around on their roof installing glass.