Trading begins on 8point3 yieldco

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The joint yieldco of U.S. solar giants SunPower and First Solar is moving forward, with a date for trading and initial price having been announced. Bloomberg has reported that the companies have raised $420 million through the offering.

The cash raised through the IPO will be distributed to First Solar and SunPower, freeing the companies up to develop more projects and invest in production.

The shares of 8point3 will be listed on the NASDAQ Global Select Market under the symbol CAFD. The CAFD ticker symbol is understood to be an insider joke, standing for ‘cash available for distribution’, the metric that determines the size of a yieldco dividend.

The name 8point3 stands for the time taken for solar radiation to reach earth: 8.3 minutes.

Goldman, Sachs & Co. and Citigroup Global Markets Inc. are acting as lead book running managers for the IPO. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Credit Agricole Securities (USA) Inc. are acting as joint book-running managers for the IPO. A prospectus can be obtained from Goldman.

On its first day of trading CAFD closed on $20.49, down 2.43% after a high of 21.15%. Over 14 million shares were traded.