Sunrun moves towards IPO

Another solar leaser is moving towards becoming a publically listed company. Sunrun will join SolarCity as a public company, having filed the legal documents required for the move yesterday.

The filing reveals that Sunrun hopes to raise US$100 million in the initial listing, however Fortune notes that this is likely only a ‘placeholder figure’ that will be changed at a later date.

Sunrun says that it intends to list its stock under the ticker RUN on the NASDAQ Stock Market. Sunrun sets out its partners in administrating the IPO as follows:

“Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. LLC will act as lead book-running managers for the proposed offering. BofA Merrill Lynch and RBC Capital Markets, LLC will also act as book-running managers and KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey, Inc. will act as co-managers.”

In providing analysis on the move, Fortune noted that Sunrun has raised $265 million in venture capital funding from at least five funds. With a burn rate of around $50 million in Q2 2015 and only $105 million in cash currently on its books, Fortune notes that the IPO needs to be completed by the end of Q3, unless alternative funding is found.

Fortune compared Sunrun to its leasing rivals SolarCity and Vivint the follow way:

“REVENUE

Sunrun: $198 million

SolarCity: $163 million (19.1% growth

Vivint Solar: $25 million (309% growth)

NET INCOME

Sunrun: -$162.5 million

SolarCity: -$55.8 million

Vivint Solar: -$28.88 million

SolarCity has a current market cap of around $5.48 billion, while Vivint is valued at around $1.47 billion.”

Reuters notes that SolarCity’s shares have increased in value seven-fold since listing in 2012. The money raised through IPO has allowed SolarCity continue its rapid expansion and make a bold move into manufacturing with its Silevo GW-scale fab, currently under construction.