BrightSource Energy withdraws IPO

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BrightSource Energy, which develops utility-scale solar thermal power plants, withdrew its plans for an initial public offering on Thursday, citing poor market conditions. The company had been scheduled to sell 6.9 million shares at a price range of $21-$23 on Wednesday evening. Goldman, Sachs & Co., Citi, and Deutsche Bank Securities were set to be the lead underwriters on the deal.

BrightSource's withdrawal shows that, despite the uptick in IPO activity so far this year (47 IPOs priced, up from 36 in the year-ago period) and the strong returns they have shown (median return of 18%), investors continue to be discerning. In particular, BrightSource is the third alternative energy IPO to be pulled or delayed in recent weeks, following after Luca Technologies (LUCA) and Enerkem (NRKM). Investors continue to be skeptical of relatively early-stage companies with unproven technology that are spending significantly as they move toward commercialization. BrightSource's postponement may also reflect negative sentiment resulting from the high-profile bankruptcy of Solyndra, another solar company that, like BrightSource, was a beneficiary of DoE loan guarantees.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , IPOs

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