At least two solar companies have pulled plans for initial public offerings in recent weeks, further evidence of the uncertain investment climate in the sector despite a strong earnings report from bellwether First Solar on Wednesday.
Nitol Solar, a Russian company that processes silicon for the solar industry, on Thursday pulled its planned listing on the London Stock Exchange, according to Thomson Financial News. Chinese silicon ingot maker Solargiga beat the Russian company to the punch pulling its planned listing in Hong Kong in the last week of January.
Both companies cited unfavorable market conditions.
And Evergreen Solar this week reduced the target price for a secondary offering to $9.50 per share, down from over $12.
New Energy Finance analyst Nathaniel Bullard said it’s a bad climate for solar IPOs with many solar stocks still trading below their 52-week highs.
“You won’t get the returns that venture backers want,” he said.
San Jose-based SunPower’s shares ended Thursday trading at $80.67 per share, down from its 52-week high of $164.49. Phoenix, Arizona-based First Solar was trading at $224.11 at the end of the day, down from its 52-week high of $283.
But First Solar shares had closed up more than 6 percent Wednesday after the company posted fourth-quarter earnings that were seven times greater than the year-ago period. The news caused other solar stocks to rise on Wednesday, though many lost ground on Thursday.
Mr. Bullard said First Solar’s strong earnings growth should not be seen as indicative of other solar companies. First Solar makes thin-film solar panels using cadmium-telluride semiconductor material—not silicon—so the company has not been exposed to pricing and supply issues like other solar firms. Many have seen their margins shrink as a result.
Yingli Green Energy, a Chinese polysilicon solar panel maker, will report earnings on Friday. Analysts estimate the company will post $1.35 per share on revenue of $1.31 billion, according to Thomson Financial. The solar firm went public in June last year.