Shares of solar equipment maker GT Solar International Inc. rose as high as $17 in their Thursday debut, but quickly tumbled along with the broader market.
Merrimack, N.J.-based GT Solar makes equipment for manufacturing solar panels. Its initial public offering of 30.3 million shares was priced at $16.50 each, the midpoint of its expected range. The $500 million offering represents the nation's largest IPO this year in the alternative energy industry.
After the market opened shares rose to $17, but by afternoon were down $1.71, or 11 percent, at $14.79 with 15 million shares changing hands. Meanwhile, the Dow Jones Industrial average lost nearly 150 points and the S&P 500 Index was down 1.2 percent, as a steeper-than-expected decline in existing home sales wiped away some of the market's optimism about upbeat earnings reports.
The IPO came a day after oil prices dropped sharply, with oil tumbling Wednesday $3.98 to settle at $124.44 a barrel, its lowest finish since June 4. Crude had settled lower in six of the previous seven sessions, and trades nearly 15 percent below its peak above $147 a barrel earlier this month.
All of the shares were sold by GT Solar Holdings LLC, which also granted underwriters an option to purchase up to an additional 4.5 million common shares to cover over-allotments, if any.
Credit Suisse Securities (USA) LLC and UBS Investment Bank acted as joint book-running managers for the offering, and Banc of America Securities LLC, Deutsche Bank Securities, Piper Jaffray and Thomas Weisel Partners LLC acted as co-managers