LEHI — After raising $330 million in its initial public offering on Tuesday, Lehi-based tech firm Vivint Solar Inc. is poised to focus on increasing its market share in the residential solar energy field.
Vivint sold 20.6 million shares Wednesday, a $1.1 billion gain for investors supporting the company, Bloomberg reported. The company’s shares are listed on the New York Stock Exchange under the symbol VSLR.
Founded in 2011, Vivint Solar designs installs and maintains solar energy systems nationwide. Using power generated by solar photovoltaic panel systems installed on their homes, customers save money relative to electric utility provider rates through a power purchase agreement or solar energy system lease, explained executive vice president Shawn Lindquist.
“We’re really focused on solar and taking it to more and more homeowners across the country,” he said. “It’s really exciting to grow a business like this in Utah.”
Vivint Solar currently employs nearly 2,300 people nationally, with more than 700 in the Beehive State. Today, the company installs solar panels on homes in Arizona, California, Hawaii, Maryland, Massachusetts, New Jersey, New York along with Washington, D.C.
The company sold shares for $16, pricing them at the low end of the marketed range. Regulatory filings indicated that some of the proceeds would be used to repay debt owed to Blackstone, which will hold a 78 percent stake following the IPO.
Vivint Solar was created under parent company Vivint Inc. — a provider of residential-security services and technology that allows customers to control features remotely. Blackstone acquired the firm’s top assets in a $2 billion buyout in 2012 from a group led by Goldman Sachs Group Inc.
Vivint Solar posted revenues of $6.17 million in 2013, primarily from sales of solar operating leases. The company offers 20-year contracts for electricity powered by solar energy that costs customers as much as 30 percent less than their current utility rates, Lindquist said.
He said the infusion of IPO capital would help the company with its plan to grow the business over the next 12 to 18 months.
Lindquist said the company hopes to use this most recent move to gain market share on current industry leader San Mateo, California-based SolarCity. Vivint currently owns about 9 percent of the overall market compared to its aforementioned top-ranked competitor, which owns approximately 29 percent.
He declined to discuss specific elements of the firm’s growth strategy, but said the goal of Vivint Solar is to become the major source in the industry.
“We do plan to grow and we will grow responsibly,” he said. “We want to take advantage of the opportunity and get solar on rooftops as fast as we can.”
E-mail: [email protected], Twitter: JasenLee1