First Solar Inc. (Nasdaq: FSLR), a thin-film solar manufacturer, raised $400 million in its IPO Friday, with an increased initial public offering priced above the forecasted range.
The 20 million share offering, representing almost 29% of the company’s shares, sold for $20 per share, compared with the expected range of $17-$19. The offering was increased from an initial 17.5 million shares.
Shares surged 23.7% on the opening day, closing at $24.74. The company an initial market capitalization of almost $1.39 billion.
First Solar plans to use the proceeds for possible acquisitions, general corporate purposes, working capital and research and development.
First Solar’s thin film technology features automated production to manufacture solar modules that are among the lowest cost in the world. Its manufacturing process can turn a sheet of glass into a complete solar module.
The shortage of poly-silicon materials opened a huge window of opportunity for thin-film companies like First Solar that use very little of the material.
First Solar’s revenue grew from $3.2 million in 2003 to $48.1 million in 2005 and from $34.5 million in the first nine months of 2005 to $82.3 million in the first nine months of 2006.
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