GT Solar (SOLR) has priced its IPO of 30.3 million shares at $16.50 per share, 66 times 2007 earnings. It was the largest U.S. alternative energy deal so far this year. SOLR will start trading on NASDAQ today.
GT Solar provides manufacturing equipment to the photovoltaic (PV) industry. The company’s products are used to make solar grade polysilicon, multicrystalline silicon wafers, solar cells, and complete solar modules.
GT Solar reported net income of $36 million and revenue of $244 million for the Q108. With 142.4 million shares outstanding, GT Solar was priced at a market cap of $2.35 billion.
Some analysts believe the extreme P/E ratio is warranted because of a more than $1 billion order backlog and because the company’s compound growth rate the past two years was 128%.