First Wind IPO Delayed Indefinitely

by Terrence Murray - October 28, 2010

First Wind has delayed an Initial Public Offering (IPO) that at one point was expected to raise as much as $300 million for the Boston-based developer of utility-scale wind projects.

An industry source tells G.E.R. that First Wind has suspended its IPO indefinitely. “I think it’s fair to say that the IPO won’t be happening anytime soon,” the source tells G.E.R.

In a statement First Wind CEO Paul Gaynor said:� “While we received significant interest from potential investors during the marketing of our IPO, the terms that the IPO market was seeking at this time were not attractive to the company.�

Credit Suisse, Morgan Stanley and Goldman Sachs and� Deutsche Bank were underwriting the IPO.

Yesterday, that First Wind had cut the value of its IPO by 24 percent.� The company initially planed to sell shares for $24 to $26. Under the new valuation the company was planing to sell 12 million shares for $18 to $20.

First wind’s steep losses, (the company expects accumulated losses of $233 million), might have also helped� cool investor appetite.

Also hurting First Wind are the growing uncertainties over the future of key U.S. subsidies, including the very popular 1603 cash grants. A report�released today by market research firm Bloomberg New Energy Finance warns that “the U.S. [wind] market continues to be challenged by fallout from the financial crisis,” as well as ongoing low natural gas prices.

Bloomberg New Energy Finance� expects wind installations in the U.S. to fall by� 39 percent this year. Over the same time China’s capacity surged 25 percent.

One Response to “First Wind IPO Delayed Indefinitely”

  1. [...] which at one point had banked it could raise as much as $300 million. Instead, yesterday the company outright canceled the IPO, citing poor market conditions. Also, at issue, specifically with investors, is the company’s [...]

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