Scatec Solar, the Norwegian solar developer, has sharply revised the share price for its pending initial public offering (IPO) from NOK 28-36 ($4.42-$5.68) per share announced a week ago to NOK 19-21 ($2.94-$3.25) per share as the company prepared to commence its first day trading.
Previously scheduled for today, Scatec Solar has extended the bookbuilding and application period in quickstep with the revised indicative price range.
Trading on the Oslo Stock Exchange will now commence on or around Thursday October 2 following the completion of the application extension, which is set at 12:00 CET tomorrow, Tuesday 30 September.
The cut to the IPO price lowers the companys valuation from NOK 1.89 billion-2.43 billion ($298 million-$383 million) to NOK 1.28 billion-1.42 billion ($199 million-$220 million). A press release issued today revealed that Scatec intends to sell no more than 10 million existing shares in the company, targeting a gross total of NOK 500 million ($77.45 million) in IPO funds once trading begins.
According to Scatec Solar’s official press release, this scale back in the number of shares to be sold is expected to be "approximately pro-rata between the selling shareholders with the exception of the members of the Company’s management team, which will not sell any shares in the offering".
The company confirmed that share sales at the new price are oversubscribed.