Blog Post

Changing World IPO Is a No-Go

changing_world_tech_logoBiofuel developer Changing World Technologies has withdrawn its filing for an initial public offering, making it even more unlikely that we’ll see any cleantech startups debut on the public markets this year. The West Hempstead, N.Y.-based company’s share sale was expected to price this week, but a spokeswoman for WR Hambrecht, which was set to underwrite the IPO, told us via email that the filing was withdrawn due to market conditions.

This would’ve been the first cleantech IPO for 2009, and one of only a handful of initial public offerings set to take place this year. The company, which makes biodiesel, as well as fertilizer, out of animal and food processing waste, gave us a glimmer of hope a few weeks ago when terms of the offering were set at 2.75 million shares at $11-$15 each, or up to $42 million.

That was already a significant drop in value from the estimated $100 million target in the company’s original filing last August. Then earlier this week the price range was lowered even further, to $8-$12, before the IPO was withdrawn.

There are still some other cleantech IPOs hanging in the air, including battery maker A123 Systems. The Watertown, Mass.-based company first filed for the IPO last August, with an estimated target of $175 million. Then in January, the company lost out on a deal to build batteries for the Chevy Volt.

Elsewhere, Newton, Mass.-based wind farm developer First Wind is looking to raise an estimated $450 million, and solar module encapsulant producer STR Holdings in Enfield, Conn., has filed to raise up to $300 million.

We’re also still waiting on Hong Kong-based GCL Silicon Technology, a solar polysilicon and wafer supplier; Essex, Conn.’s Noble Environmental Power, a wind power company; and Global Water Resources, a Phoenix-based water, wastewater and recycled water utility.

Some analysts, however, have said that startups won’t have a good shot at going public until 2010.