French developer Solairedirect has pulled back a planned initial public of offering of its shares, citing poor demand.
The IPO to raise US$242 million was due to be completed this week, with shares to be listed on Euronext next week. The company said it has decided to postpone the IPO “despite broad-based and quality demand and interest from investors.”
The company’s CEO Thierry Lepercq said even though the there was support from the US and Nordic region for the share sale, it could not sell as many shares as planned. He said the IPO may be revived later this year.
Solairedirect’s business model of not relying on government subsidies is thought to be a factor for the poor interest in the IPO. The company generally take s minority stakes in solar projects, and had planned to use the proceeds from the IPO to expand its portfolio of 500 megawatts of projects in operation or under construction.