BrightSource Energy has cancelled its Nasdaq IPO. The solar thermal technology company announced late Wednesday that it had decided not to pursue its initial public offering due to adverse market conditions. It had planned to raise $150 million at a company value of $1-1.1 billion.
“While we received significant interest from potential investors, the continued market and economic volatility are not optimal conditions for an IPO,” said BrightSource Energy president and CEO John Woolard. "As a company, we’ve consistently made decisions in the best interest of our shareholders, employees and customers, and we will continue to do so. Fortunately, we’re in a strong financial position and have the support of world-class investors and partners.”
BrightSource was founded in 2004 and moved its headquarters to Oakland, California, in 2008. It has development and testing centers in Har Hotzvim in Jerusalem and at Mishor Rotem in the Negev, which employ most of its 412 employees. The company designs, develops and deploys concentrating solar thermal technology to produce high-value steam for electric power, petroleum and industrial-process markets worldwide. The company is deploying its technology at the Ivanpah Solar Electric Generating System, which when completed, will be the largest solar thermal project in the world. Ivanpah fulfills the first three of 13 power plants that the company is delivering to meet its more than 2.3 gigawatts of contracts with Pacific Gas & Electric Company and Southern California Edison.
“With our pipeline of U.S. contracts and our flagship Ivanpah project, we have established a leading position in the domestic solar thermal energy space,” added Woolard. “We will continue to execute on our business plan to grow domestically and expand internationally to meet the growing demand for our technology.”
While market conditions did not give backing to BrightSource, the main reason that investors were not enthusiastic about the IPO is the state of solar energy. The global economic crisis and its effect on governments means that renewable energy and solar energy in particular are having a difficult time. Government are postponing planned projects for solar energy power stations and lowering the prices they are prepared to pay for electricity.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2012
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