SemiOT:SunPower Shines As Shares Climb By 41% in Debut
The Semiconductor Sector Recovers From Vimicro IPO;
12 Offerings Expected Today
By LYNN COWAN
DOW JONES NEWSWIRES
November 18, 2005; Page C3
This week's second new-stock offering in the semiconductor industry got off to a strong start.
The initial public offering of SunPower Corp. rose 41% from the offer price of $18, to finish on the Nasdaq Stock Market at $25.45 a share.
The Sunnyvale, Calif., maker of solar-power products, which was "carved out" of parent Cypress Semiconductor Corp., which still owns 87%, sold 7.7 million shares of its stock at the high end of the expected range set by underwriters, Credit Suisse Group's Credit Suisse First Boston and Lehman Brothers Holdings Inc. The underwriters boosted the range Tuesday from its previous level of $12 to $14.
SunPower's IPO follows the disappointing debut of Chinese semiconductor designer Vimicro International Corp. on Tuesday. That stock closed down 16% from its IPO price of $10 a share, and traded yesterday at $9.25, up 10% on the Nasdaq. Vimicro's prospectus revealed concerns about accounting controls.
SunPower had no such accounting issues. Its role as a high-power solar-cell maker comes at a time when the world is grappling with rising energy costs from traditional petroleum sources, and governments are likely to continue or increase the financial incentives for the use of alternative-energy products like solar cells. But SunPower's deal wasn't without risk: The company, which was incorporated in 1985, has reported net losses since its inception. Currently, it is grappling with an industrywide shortage of polysilicon, the primary material in its products. |
