An initial public offering from Enphase Energy Inc. rose 22 percent after the maker of technology to harness electricity from solar panels cut its price, while its venture backers bought about $15 million worth of the shares making their debut.
Sanjay Unni said it is unusual for venture capitalists to buy shares at the IPO price. VCs typically put most or all of their money into a firm well before it goes public, and then sell their shares for a profit in an IPO or in secondary offerings. “It may be an indication to show their confidence in the stock and to demonstrate their willingness to invest at the same terms as public-market investors,” he noted. Dr. Unni said Enphase is facing a difficult solar market right now with a glut of supply, pared-back government subsidies, and declining share prices of panel manufacturers.