The U.S. IPO market began 2017 with a solid start, with 25 IPOs raising nearly $10 billion in the first quarter and another 31 IPOs in the second quarter through May 15. We have a number of U.S. and non-U.S. clients moving ahead on U.S. IPO plans in 2017. Will the IPO market in the United States experience a renaissance? While IPOs in the U.S. fell off the map after a slowdown in 2015, the market looks to be bouncing back. For more information, read Mintz Levin’s Securities Matters blog post, which provides a detailed look at recent U.S. IPO market trends.
On April 6, a consortium of leading financial institutions and investors pledged $8 billion to join Bank of America Corporation’s Catalytic Finance Initiative (CFI), which plans to raise at least $10 billion for investments in clean energy, high impact, and sustainable development projects. Partners joining the initiative include AllianceBernstein, Babson Capital Management, Credit Agricole CIB, European Investment Bank, HSBC Group, International Finance Corporation, and Mirova. Members of the partnership have all pledged capital and expertise to develop and advance innovative financing structures in the clean energy and sustainability space. Furthermore, the Aligned Intermediary—a group of long-term institutional investors—will collaborate on specific investment opportunities with members of the CFI. For more on the CFI, read on!
America’s 10 year energy resurgence exhibits the difficulty of prediction. Unexpected global events, from the persistence of the U.S. fracking revolution to the impact (or lack thereof) of low natural gas prices on the business case for renewable exergy, have fundamentally transformed America’s energy standing. Despite the notion that the only seemingly certain thing in this arena is uncertainty, there are tools available to separate fact from fiction. As America wades further into the global energy landscape, two forces will frame the future: politics and economics. Every stakeholder in the energy industry, from fossil fuels to renewable energy, from investors to energy companies, will respond to the environment these forces create. How will these disparate pieces of the American energy industry work together to navigate coming political and economic challenges? Read on to find out!
Tom Burton, Chair of Mintz Levin’s Energy Technology Practice, will publish a weekly installment providing insight into the challenges and possible solutions that, if implemented, promise a bright future as clean energy moves America forward. In this series, Tom will include one challenge per week and the potential solution(s). This is the fourth installment of the series. Click to read Part I, Part II, and Part III.
The Problem: Finance Gap for Innovation Deployment
The last decade has seen tremendous innovations in cleantech that have not only brought new products, but also a fall in prices to consumers. For example, the average cost of solar panels has dropped from around $3.50/watt in 2005 to $0.36/watt today, an entire order of magnitude. From 2006 to 2014, worldwide average PV module prices have dropped about 78% from $3.25 per watt to about $0.72 per watt. The last five years alone have seen battery prices drop 72%.
Despite encouraging advances, the industry has seen a shortfall in matching capital to projects. According to Bloomberg New Energy Finance, clean energy investment is essentially right where it was in 2008. Further, according to the Steyer-Taylor Center, investments dropped 67% between 2011 and 2013.The sector needs capital increases to support and scale the many groundbreaking renewable energy ideas out there.
Continue Reading Policy and Legal Implications of Implementing Renewable Energy at Scale: Finance Gap for Innovation Deployment (Part 4 of 6)
In their recently released 2015 Market Report, Advanced Energy Economy reveals that the US advanced energy market grew to $200 billion in 2014, an increase of 13% above the total for 2013. This activity positions the U.S. advanced energy market in strong company, $20 billion higher than the airline industry and neck-and-neck with pharmaceutical manufacturing. In addition, the powerhouse consumer electronics market lies within reach at $211 billion. Strong postings from wind, solar photo-voltaics, and natural gas added to the already strong foundation of the largest segment of U.S. advanced energy – building efficiency products and services.
The 2015 Report, the third such publication from Advanced Energy Economy, was compiled in partnership with Navigant Research. The report provides up-to-date information on a wide spectrum of energy-related market sectors, including transportation, fuel production, fuel delivery, building efficiency, generation, delivery and management, and more. Click here to view highlights from the report.
In this quarter’s Cleantech Law Alert from CleanEdge, Sahir Surmeli takes a deep look at the Initial Public Offering statistics for Cleantech and Renewable companies in 2014. Last year was the most active year for IPOs in the United States since 2000, with an astounding 275 IPOs completed in 2014. Sahir explores what this activity means for emerging clean technology and renewable energy companies that might be looking to the capital markets. As he reveals, there were nine cleantech/renewables IPOs in 2014, two more than the year before. However, in both years, these numbers represented a relatively small percentage of total IPOs and still have not matched the activity in the more traditional energy and oil & gas sector. To read Sahir’s full piece, please find his article here.
This article was originally published in the CleanEdge Quarterly Clean-Tech Law Alert.
Thanks to Valentine’s Day falling on a Saturday this year, investors have a few extra days to file Schedule 13Gs, which will be due on Tuesday, February 17, 2015. Are you an investor in companies that went public in 2014? If so, you may be required to file as well. For more information, read Mintz Levin’s Securities Matters blog post, which contains a detailed memorandum about the rules and the timing of filing Schedule 13Ds and Schedule 13Gs.