SolarCity shares surge in market debut

AP News

12/13/2012 11:42:12 AM - AP News

NEW YORK (AP) — Shares of rooftop solar installer SolarCity are surging in their market debut after the offer priced well below its original expectations.

The stock is up $2.42, or 30.3 percent, to $10.42 in Thursday morning trading, after reaching as high as $10.60 earlier.

The San Mateo, Calif., company cut its expectations for the offer on Wednesday. It issued 11.5 million shares at $8 per share, for proceeds of $92 million. It had originally hoped to offer 10.1 million shares at $13 to $15 per share, with proceeds of $141 million.

SolarCity offers homeowners a "solar lease" that allows them to pay for the panels and electricity that they generate over time, often for less than it would cost to buy electricity from a local utility.