As expected Vivint Solar has filed a form S-1 for its initial public offering (IPO). If approved, the IPO will allow the company to raise funds through public offering of common stock on the New York Stock Exchange under the stock ticker VSLR. The company has filed to offer up to $200 million in stock.
The move by Vivint Solar, now a subsidiary of The Blackstone Group, was expected. The company is now the nation’s second largest solar installer behind SolarCity and the company plans to continue to grow and challenge SolarCity.
Vivint Solar will also become the second large solar installer to go public. SolarCity went public in 2012 and has since seen its stock price soar from $11.72 open its listing in December 2012 to $69.89 as of Aug. 27.
Vivint Solar already has raised significant amounts of capital. “The company has raised nine investment funds to which banks have committed to invest approximately $443 million,” Greentech Media’s Eric Wesoff. “This will allow Vivint to install PV systems of approximately $1.1 billion in value.”
With access to public funds Vivint Solar could increase its ability to grow even more quickly. Since launching in 2011 Vivint Solar has installed solar on more than 21,900 homes across seven states, with an average size of 5.9 kilowatts. In all it’s installed roughly 129.7 megawatts of photovoltaics, according to the S-1 filing.
Vivint Solar said that Goldman, Sachs & Co., BofA Merrill Lynch and Credit Suisse Securities LLC will act as lead book-running managers for the offering. Other book running managers will include Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and Barclays Capital Inc.
Wesoff notes that unlike competitors Vivint Solar is only in a few states. “Vivint has put all of its sales efforts into just six states, not including its recently announced expansion to Arizona. The large gap between SolarCity and Vivint is most drastic in California, but Vivint has beat the national leader in New York and Massachusetts for the past several quarters,” he says. Part of the reason its been so successful in those markets is likely because of its door-to-door sales model. The company relies almost solely on that and referrals for its business, he says.Tweet