The entrepreneur Elon Musk isn't a stranger to daunting business propositions, from electric cars to space travel. Now, a solar company that he chairs is attempting to take on another risky venture: going public.
SolarCity, a provider of solar power to retail customers, formally disclosed its initial public offering prospectus on Monday. The company said that it plans to raise up to $201.3 million, though it gave no price range.
SolarCity is looking to go public at a tough time.
Renewable energy companies in general have faced headwinds this year, as governments reduce their backing of technologies like solar and wind power. Rival BrightSource, which had been one of the year's most-anticipated stock sales, withdrew its offering in April, citing unfavorable market conditions.
SolarCity is betting that investors believe it can thrive. It reported $59.6 million in revenue last year, an 84 percent gain from the year-ago period.
But the company is struggling to turn a profit. It reported a $61 million operating loss last year. Stripping away losses born by joint venture partners, it earned $43.5 million for its stockholders. For the first six months of the year, SolarCity reported a $30.1 million operating loss, and a $23.1 million loss attributable to stockholders.
There are other potentially alarming disclosures as well. The company said that earlier this month the Internal Revenue Service had begun auditing two of its investment funds to determine whether solar power systems that are part of a government grant program were overvalued.
With its debut, SolarCity plans to take advantage of provisions in the Jumpstart Our Business Startups Act that allow for reduced disclosure. In this case, the company plans to provide reduced information about its executive compensation.
The offering is being led by Goldman Sachs, Credit Suisse, Bank of America Merrill Lynch, Needham & Company and Roth Capital Partn ers.
