Comverge's IPO rises in debut
By Steve Gelsi, MarketWatch
Last Update: 11:40 AM ET Apr 13, 2007
NEW YORK (MarketWatch) -- Comverge Inc. shares rose more than 10% Friday, after having priced above their projected range in the electric-power efficiency specialist's stock market debut.
Comverge (COMV ) priced 5.3 million shares at $18 each, generating gross proceeds of $95.4 million with underwriter Citigroup (C) .
The shares changed hands at $20.73 at late morning on Nasdaq.
The East Hanover, N.J.-based maker of software and related technology is tapping into the so-called "cleantech" sector aimed at reducing the world's carbon footprint by making electricity transmission grids smarter.
"There was extremely large institutional demand," said Scott Sweet of IPO Boutique. "It was dominated by dedicated mutual funds that buy only utility-based entities, and funds that have as its charter the purchase of only socially responsible stocks."
Reflecting this, Comverge increased the size of the IPO by nearly 13%, up from 4.7 million shares, and priced above its estimated range of $15 to $17 a share.
While Comverge hasn't yet turned a profit, its revenue increased 45% in the past year and its net loss narrowed by 28%.
Renaissance Capital, which manages the IPO Plus Fund (IPOSX ) , noted that stock performance turned in Comverge competitors such as Esco Technologies (ESE ) and Itron (ITRI ) has been relatively flat.
Comverge has distinguished itself as the first demand-management company to offer utilities outsourcing, Renaissance Capital said.
The company also recruits residential electric customers to install response technology from the company on air conditioners in return for a $30 payment.
In peak summer hours, Comverge monitors usage and lowers the capacity used by these air conditioners, saving some one kilowatt per residence.
Utilities then pay Comverge per megawatt of capacity saved
Friday, April 13, 2007
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