Wednesday spelled a new chapter for U.S. solar installers Sunrun who made their debut on NASDAQ. However, the initial exultation ran dry when Sunrun’s shares took a hit dropping over 20% from its debut price of $14 per share on the same day. At $14, Sunrun managed to raise $251 million with its IPO.
Sunrun is not the first solar installation company to have gone public. Direct competitors Vivint Solar made its debut in October 2014 raising $330 million and SolarCity went public in December 2012. Meanwhile Vivint’s shares have not done too shabbily, trading at around $15, from the initially priced $16. SunEdison’s yieldco vehicle TerraForm Power however is the buoy that has kept the shares afloat with its decision to acquire Vivint. Another major solar installer SolarCity has seen its shares increasing seven-fold since listing in 2012.
Similar expectations were awaited for Sunrun, but the IPO push just has not borne enough fruit for the company. Sunrun is currently the fourth biggest U.S. residential solar installer according to GTM Research’s statistics, with approximately 2% market share. The top two take up mammoth slices of the pie with SolarCity alone occupying 34% of the residential solar market and Vivint accounting for 13%. No other company has a double-digit market penetration in this segment.