Sunrun lays down terms for $309m IPO

Silicon Valley-based solar lease provider Sunrun has today set terms for its planned initial public offering (IPO) in which the company is seeking to raise up to $309 million to enable it to stay competitive in the increasingly expanding U.S. residential solar market.

Having filed for a S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) in late June, Sunrun then delivered a $111 million aggregate securitized solar asset offering for residential solar leases.

These latest terms reveal that Sunrun will list as SUN on the Nasdaq, and will place a share price of $13 to $15 on its 17.9 million shares. The upper end of this bracket would see the company raise close to $300 million, while the mid-point price would yield closer to around $250 million in the offering.

The IPO will see Sunrun augment its position as a leading provider of solar leasing services in the U.S. residential market. The company tripled its revenues in 2014 year-on-year, registering $198.6 million, but knows that in this fast-paced sector of the solar industry, cash is king, and its losses actually mounted last year to $162.6 million.

Faced with the not-inconsiderable might of its two closest competitors – Elon Musk-backed SolarCity, the market leader, and Vivint Solar, which was recently bought by global renewable energy firm SunEdison for $2.2 billion – Sunrun pretty much has very little other option than to go public.

The U.S. residential rooftop market – buoyed by these no- or low-upfront cost financial packages – has grown rapidly in the past 18 months, and a further three million new residences are forecast to install solar PV systems over the next five years.