Sunrun IPO: Everything You Need to Know

Sunrun IPO
Image by Thomas Kohler

Sunrun’s stock is ready to hit the market on Wednesday August 5, 2015. The company submitted a filing to the Securities and Exchange Commission (SEC) on June 25, 2015 for its initial public offering (IPO). Here’s what investors need to know about an upcoming Sunrun IPO. (Source: Securities and Exchange Commission, last accessed August 4, 2015.)

Who is Sunrun?

Sunrun is a residential solar energy provider company based in San Francisco, CA. The company was founded in 2007 and currently has about 1,700 employees. The company operates in 15 U.S. states.

What is Sunrun’s Business Model?

Sunrun intended to expand their services for residential houses and help homeowners reduce their utility costs.

“We provide clean, solar energy to homeowners at a significant savings to traditional utility energy. After inventing the residential solar service model and recognizing its enormous market potential, we leveraged our first-mover advantage to build out the infrastructure and capabilities necessary to rapidly acquire and serve customers in a low-cost and scalable manner.”

The company plans to increase its market share and take advantage of the fast-growing solar energy industry by achieving an economy of scale.

According to a report by GMT Research, Sunrun has the third-place spot in the home solar installer industry in the U.S. with the market share of three percent. The company is just behind Vivint Solar with about 13% market share and Solar City with 34%. (Source: Greentechsolar.com, last accessed August 4, 2015.)

What is Sunrun’s Revenue?

The company recorded a $199 million in revenue last year and had a net loss of $69.0 million. For the first three months of 2015, the company generated more than $22.0 million in sales, an increase of 21% from the same period in 2014.

What is Sunrun’s IPO Price?

The company plans to raise $251 million by issuing about 18 million shares. The prices are expected to range from $13.00 to $15.00. The primary underwrites for the public offering are Credit Suisse, Goldman, Sachs & Co. and Morgan Stanley.

What is Sunrun’s Stock Symbol?

The company has applied to be listed on the NASDAQ, under the ticker symbol “RUN.”

How Will Sunrun Use the Money?

The company intends to use the proceeds it receives from this IPO to increase its working capital expenditures as part of their overall expansion strategy.