Real Goods Solar, the Broomfield, Colorado-based solar installer and a subsidiary of Gaiam (NASDAQ: GAIA), a green lifestyle company, expects to sell 5 million shares at $10 - 12 when it files for an IPO on the NASDAQ under the ticker symbol "RSOL". The offering's lead underwriter is ThinkPanmure, with Canaccord Adams and Broadpoint Capital as co-managers.
The company, which recently bought out California-based competitors Marin Solar and Carlson Solar, hopes to raise $49 million after fees and other expenses, $19.8 million of which it plans to use to repay debts owed to Gaiam. It values itself at $165 million.
It claims to have installed more residential solar systems in the U.S. than any other company -- a figure it says has now surpassed 2,500. It has also sold other solar products to more than 30,000 customers and is California's largest solar company. It acquired Marin Solar last November for $3.2 million in cash and Carlson Solar in January this year for the same cash amount, plus warrants to purchase 30,000 shares. Part of the proceeds it raises from the offering could finance future acquisitions.
Real Goods reported profit of $102,000 on revenue of $18.9 million in 2007. It reported earnings of $250,000 and revenue of $16.8 million the previous year. Gaiam will own about 66.7% of Real Goods' outstanding shares if it converts its Class B common stock into Class A common stock.
Unless Nanosolar comes forth with plans to file for its own IPO, Real Goods will likely be the only solar firm to do so in the current investment climate. More acquisitions could come in the near future, with an IPO next year, when more capital becomes available.