GT Solar International Inc’s initial public offering is expected to be the largest ever by a U.S. solar company, according to a Reuters article.
However, investors have been skittish on solar stocks in recent weeks,
as the Spanish government considers pulling back support for its
booming solar market and tax incentives in the U.S. edge closer to
expiration.
GT Solar makes manufacturing equipment used by solar companies and
reportedly has an order backlog of more than $1 billion. That figure
combined with the company’s compound annual growth rate of 128% in the
past two years support a higher price earning ratio, according to some
analysts.
The IPO is forecast to price in a range of $15.50 to $17.50 a
share. If it prices at the midpoint of the range, shares would trade 66
times 2007 earnings.
Read more about how this high profile IPO relates to current trends in the solar power market.
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