Summary:

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?

SolarCity at the NASDAQ, image courtesy of NASDAQ.

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).

SolarCity raised $92 million in the offering, and had a valuation of $592 million at the $8 per share price. That’s down from an over billion dollar valuation, and a planned raise of $141 million. Wall Street has seemed a little skittish of solar and clean energy stocks throughout 2012.

Given the interest in SolarCity’s stock in morning trading, perhaps that sentiment is turning a corner. An $11 per share price is a closer valuation to what the company and its investors wanted originally. SolarCity installs and finances solar panels on rooftops, which is very different from a manufacturer making solar cells and modules.

You’re subscribed! If you like, you can update your settings

Comments have been disabled for this post