INVESTORS BET ON NEW ENERGY

‘Renewed Appetite’ for IPOs Set to Boost Solar, Wind
Mark Scott and Alex Morales (w/Michael Tsang, Randall Hackley, Todd White), April 15, 2010 (Bloomberg News via BusinessWeek)

"The biggest revival in stock prices since the Great Depression is reigniting interest in initial public offerings by environmental companies, spurring businesses from China to California to issue new shares.

"Electric automaker Tesla Motors Inc., U.S. green-energy producer Ameresco Inc. and Spain’s T-Solar Global SA have announced plans to go public and more companies are set to follow…Italian utility Enel SpA…plans to sell a minority stake of its renewable energy unit Enel Green Power for $5.4 billion by the end of 2010…IPOs have increased as the MSCI World Index of stocks in developed nations surged 80 percent since March 2009, recovering from a 42 percent slump in 2008 that was the biggest on record…Renewable energy projects such as wind farms and solar parks are drawing the most interest…"

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"Of the 19 green companies that have announced IPOs since September, 12 are from wind or solar businesses…None have sold their shares yet…Chinese wind turbine producer Xinjiang Goldwind Science & Technology Co. is aiming to raise $1.5 billion in Hong Kong…British solar energy producer Engyco wants to secure $1.4 billion while its Madrid-based rivals Renovalia Energy SA and T- Solar may each raise more than $300 million…Fallbrook Technologies Inc., a San Diego-based maker of efficient transmissions for vehicles, is seeking $50 million. Tesla of Palo Alto, California, plans to raise $100 million…

"Environmental companies have one advantage over many non- green rivals: state support. Countries around the world have earmarked $184 billion to fund renewable energy installations and projects…The U.S., Japan and European countries are tightening regulations to force companies to improve energy efficiency and cut carbon-dioxide emissions…"

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"State funding may ease as governments, particularly in cash-strapped European countries, work to curb growing deficits and subsides that were too generous…Germany and Spain have cut support for solar power after together capturing about 75 percent of worldwide installations for photovoltaic panels in 2008…[The Czech Republic and the UK plan to reduce the deficit…Green initiatives such as loans for homeowners who install solar panels may be trimmed by politicians under pressure to curb deficits…

"…The Bloomberg Global Leaders Solar Index, a measure of 38 companies that generate more than half of the solar industry’s revenue, has gained 6.5 percent in the past 12 months, lagging behind the 44 percent rallies for the MSCI World Index and the Standard & Poor’s 500 Index…Three Chinese solar-related companies, JinkoSolar Holding Co., Daqo New Energy Corp. and Trony Solar Holdings Co., have shelved U.S. IPOs since December…"