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Bloom hopes to fuel investor appetite for IPO
Posted on Monday, 09 July 2018 13:47
A USD 295.10 million to USD 310.50 million initial public offering (IPO) by Bloom Energy could go some way towards financing research and development, sales and marketing, and day-to-day matters amid a ballooning debt pile. The Californian fuel cell-based power generator manufacturer is hoping Wall Street investors will be interested in a sale of 18.00 million shares at between USD 13.00 and USD 15.00 apiece on the New York Stock Exchange. Not taking into account an overallotment option for a further 2.70 million stocks for underwriters that include JPMorgan and Morgan Stanley, proceeds would range from USD 234.00 million to USD 270.00 million. Bloom is concentrating on carving out a presence in the USD 2,400 billion electric power market (in 2016), which is expected to have a compound annual growth rate of 4.3 per cent to USD 2,900 billion by 2021. The group’s initial commercial and industrial focus is currently banking, cloud services, communications and healthcare, among other verticals. As of 31st March 2018, it had 312.00 MW in total deployed systems, representing an average annual growth rate of 25.0 per cent since 2014. Despite having a mission statement to “make clean, reliable and affordable energy”, only 9.0 per cent of Bloom’s current generation of servers deployed use biogas, as of 31st March 2018. The majority of its natural gas-based systems produce “nearly 60.0 per cent less carbon emissions compared to the average of US combustion power generation” but do actually emit carbon dioxide. Bloom, which counts AT&T, Caltech and the Home Depot among its customers, is backed by the likes of Alberta Investment, Kuwait Investment Authority, New Enterprise Associates and Canada Pension Plan Investment, The group’s top line reached USD 375.99 million in the 12 months ended 31st December 2017, and while losses attributable to shareholders totalled USD 262.60 million in FY 2017, it narrowed from USD 279.66 million in FY 2016. © Zephus Ltd