UPDATE 1-Wind energy company Pattern blows past IPO price in debut

September 28, 2013 by  
Filed under Green Energy News


Fri Sep 27, 2013 12:49pm EDT

* At a high of $24.30, company valued at $1.24 bln

* Raises $352 mln from IPO

* Shares jump as much as 10 pct

Sept 27 (Reuters) – Shares of Pattern Energy Group Inc
rose 10 percent in their debut, as the recent rally in
renewable energy stocks rubbed off on the first-ever public
offering of a U.S. wind farm operator.

Pattern’s IPO comes almost three years after First Wind
Holdings Inc yanked its offering in November 2010 after
investors balked at an unprofitable company with aggressive
expansion plans. ()

However, Pattern has solid cash flow and has been largely
profitable, factors that may have helped the company get a
better pricing and drive the stock up on debut.

The company raised $352 million after pricing its offering
at $22 per share, just above its expected price range of
$19-$21. Pattern sold 16 million shares.

San Francisco, California-based Pattern owns and operates
eight wind power projects in the United States, Canada and
Chile, with a total power-generation capacity of 1,041 MW.

Pattern’s net profit rose to $29.14 million for the first
six months of 2013, from $6.44 million a year earlier. Revenue
rose 62 percent to $102.54 million.

The company is expected to benefit from the extension of a
critical tax credit by the U.S. Congress in January.

Siemens AG, the world’s No.3 maker of wind
turbines, said last month that it expects the global wind power
market to more than quadruple by 2030, lifted by strong growth
in Asia.

Pattern Energy’s shares opened at $24.10 and touched a high
of $24.30, valuing the company at $1.24 billion. Nearly 8
million shares changed hands by 12:30 p.m. ET, making it one of
the most heavily traded stocks on the Nasdaq on Friday.

“Based on this success, I would anticipate other such
filings coming shortly,” IPOscoop.com founder, John Fitzgibbon
said.

Pattern Energy is headed by Mike Garland, who led the North
American infrastructure group of investment and advisory company
Babcock Brown that was liquidated after the financial crisis.

Private equity firm Riverstone Holdings bought Babcock’s
wind energy business and named it Pattern Energy Group LP, the
parent company of the listed entity.

BMO Capital Markets, RBC Capital Markets and Morgan Stanley
are the underwriters for the IPO.

Pattern Energy shares were up 7 percent at $23.45 in
afternoon trade on the Nasdaq.

The SP Global Clean Energy Index has jumped 40
percent from April, compared to an 8 percent rise in the broader
SP 500.

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