Sunrun, the second-largest residential solar company in the US, filed on Thursday with the SEC to raise up to $100 million in an initial public offering. However, the deal size is likely a placeholder for an IPO that we estimate could raise $500 million or more.
Competitor Vivint Solar (VSLR) went public in September 2014; it has gained 45% this year and now trades 15% below the offer price. The dominant player in residential solar power systems, SolarCity (SCTY), went public in December 2012 and gained 300% in 2013. It now trades at about that level.
The San Francisco, CA-based company, which was founded in 2007 and booked $218 million in sales for the 12 months ended March 31, 2015, plans to list on the NASDAQ under the symbol RUN. Sunrun initially filed confidentially on March 27, 2015. Credit Suisse, Goldman Sachs, Morgan Stanley, BofA Merrill Lynch and RBC Capital Markets are the joint bookrunners on the deal. No pricing terms were disclosed.
