Enphase Energy IPO Sends Shares Soaring

Brian Hicks

Written By Brian Hicks

Posted March 30, 2012

Enphase Energy Inc. (NASDAQ: ENPH),  a California-based manufacturer of solar energy management devices that convert direct current electricity to alternating current electricity in solar panels, known as inverters.

Its semiconductor-based microinverter systems allow for increased energy production, simplify design and installation, and improve system uptime and energy management.

Enphase Energy, the first solar energy company to go public in the U.S. since Fall 2010, saw shares jump 25 percent in its first day as a publicly traded stock on the Nasdaq on Friday, March 30… giving it a market value of $272.5 million, according to Bloomberg.

The stock opened at $7.50 Friday morning after lower-than-anticipated pricing at $6 a share. While coming in at about 40 percent cheaper than the expected $10 to $12 per share, Enphase well exceeded its target of 7.3 million shares, selling approximately nine million.

Despite doubling its 2010 revenue to roughly $150 million in 2011 and steady growth over the past three years, Enphase’s advanced energy converter technology calls for higher initial capital investment and operational expenses.

More importantly, the company’s success relies heavily on the projected continued growth in solar energy demand. That being said, growing interest in the solar industry makes for a highly competitive playing field.

In short, Enphase Energy’s time in the spotlight could be shortlived.

Until next time,


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