Green energy is no longer a remote prospect; companies are even salivating over the monetary gain it can yield. Ethanol anyone? Well, let's not get into that. Let's focus instead on the money to be made on renewable energy that doesn’t teeter on fallout.
Fine, lucrative prospects tied to energy are nothing new, but perhaps the fact that alternative types of energy including solar and wind could boost initial public offerings (IPOs) is. It's certainly interesting. This past year has marked a miserable term for IPOs with lackluster follow-on deals to match. Right now good news in this area is a very welcome concept.
The China Environment Fund (CEF) started engaging in responsible investing in 2001. And China is becoming a hotbed for solar energy companies, such as LDK Solar Co, which trades on the NYSE.
As far back as September 2007, the CEF foresaw success among solar energy companies, as illustrated on the www.nextbillion.net blog. Steven Guo, CEF’s director of research and analysis noted that $4.7 billion was raised for IPOs that year. SunEnergy's IPO raised $94 million, and LDK Solar’s raised over $470 million.
By Janine Armin
Corporate Secretary magazine