Challenging times and outlook for IPOs of renewable energy companies
NYSE, Wall Street, New York (source: flickr/ b00nj, creative commons)
Alexander Richter
11 May 2012
The year of 2012 will be a challenging year for clean technology companies looking at raising money on the public markets through an IPO as they are perceived to be riskier
A recent article on Forbes, talks about the continuing challenges for the clean energy technology sector to raise financing on the financial markets through IPOs.
The outlook is described as “rather bleak” with three companies recently having had to cancel their plans to go public in the U.S. in April of this year.
According to the article the main reason seem to be that “Green tech companies tend to dwell in emerging markets, rely on big government support and have yet to show their technologies will gain wide acceptance. Investing them is riskier.” … and “if the overall stock market is tanking because of broader trends, such as poor job data or lower credit ratings for the U.S. and other countries, then investors will find even fewer reasons to put money in green tech stocks.”
Given the challenges of listed geothermal companies on the stock markets today, it is quite unlikely that there will be a different story for potential geothermal listings.
To read the article referred to see link below.
Source: Forbes
