Principal Solar IPO: Everything You Need to Know Before it Hits the Market

Principal Solar IPOPrincipal Solar, Inc. submitted a filing to the Securities and Exchange Commission (SEC) on June 8, 2015 about its initial public offering (IPO). However, investors may have some questions about the Principal Solar IPO before it becomes available. (Source: Securities and Exchange Commission, last accessed July 3, 2015.)

Who is Principal Solar?

Principal Solar, Inc. was founded in 2011 as a renewable energy company that owns and operates solar generation facilities in the United States. It owns three solar power production facilities. The company is headquartered in Dallas, Texas.

What is Principal Solar’s Business Model?

Principal Solar’s business plan is to acquire, build, own, and operate profitable, large-scale solar generation facilities, while also creating a web site which is a focal point for solar vendors and buyers.

The firm’s primary objective is to build a significant, innovative, and valuable solar company. Principal Solar is currently employing business expertise, a board of directors, an advisory team, and employee expertise with the goal of accelerating growth in an industry that they believe is ripe for consolidation today based upon management’s observation that the solar industry has many unrelated participants. Eventually, Principal Solar plans to become the “world’s first distributed solar utility” through mergers and acquisitions.

What is Principal Solar’s Revenue?

Principal Solar’s revenues increased from $490 million for the year ended December 31, 2013 to $975 million for the year ended December 31, 2014.

What is Principal Solar’s IPO Price?

The company said its offering could top to about $26.0 million by selling about 2.5 million shares at a price of $9.00 to $11.00 apiece.

What is Principal Solar’s Stock Symbol?

The company has applied to list on the NASDAQ under the symbol “PSWW.”

How Will Principal Solar Use the Money?

According to Principal Solar, the funds raised will be used to acquire the minority interest in its subsidiary, Powerhouse One, LLC (around $767,000), repay debt (around $1.9 million), fund potential acquisitions and project financing (over $14.0 million), redeem preferred stock, and increase capitalization and financial flexibility. (Source: Principal Solar, last accessed July 3, 2015.)