US SolarMax cuts size of planned IPO

US integrated solar energy company SolarMax Technology Inc has revised the terms of its proposed initial public offering (IPO) at home, cutting the number of shares to be placed in the transaction which now seeks gross proceeds of USD 18 million (EUR 16.4m).

The Riverside, California-based firm, which has applied to list on Nasdaq under the trading symbol SMXT, will be selling 4.5 million shares of common stock. It originally planned to offer 7.5 million units. There are also some 675,000 shares provided to cover overallotments, if any.

SolarMax expects its shares to be priced at USD 4.00 apiece. The targeted price implies a market valuation of about USD 181 million, based on the number of shares to be outstanding after the offering.

The sole bookrunner hired for the IPO is Kingswood, a division of Kingswood Capital Partners.

Founded in 2008, SolarMax specialises in the sale and installation of photovoltaic and battery backup systems for residential and commercial customers, as well as sales of LED systems and services to government and commercial users. The company also operates in China, following two acquisitions in 2015, where it is active in identifying and procuring solar farm projects for resale to third parties and performing engineering, procuring and construction (EPC) services mainly for solar farm projects.

The business generated USD 44.7 million in revenue in 2022, up from USD 37.7 million a year earlier. Its net loss in the same period expanded to USD 6.87 million from USD 3.32 million.

(USD 1 = EUR 0.913)

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