Genesis Morocco: Can we go IPO now ?

Loading Assets... Please wait

Genesis Morocco

Project Genesis is a strategic sustainable development framework for Morocco to translate from being a net importer of energy and a country facing water shortage issues, into the number one producer both of clean renewable energy and water in the region.

Tuesday, August 16, 2011    <<Home

Can we go IPO now ?

Personal Notes : That's just typically me, the $9bn solar initiative has not been brought to completion yet, that my mindset is bent on who is going to administer its revenues, what form will that entity take, and if we can go IPO with it. 

For two reasons, first Moroccans will be interested in buying shares into an energy concern, one that is local in its implementation and international in its market reach. Owning a share of such a venture makes sense for national small investors who thus far have been excluded of the stock exchange market. It makes sense on a generational scale to own your means of production. Energy is such a mean. 

We could even go social with this one with a quota of shares reserved for social ventures such as the INDH, and  foundation such as the Mohamed V foundation

Ok, second reason is that people are doing just fine with such IPO's, see article below, on a global market, the key is to reach a production capacity that enables the future energy concern to play in a meaningful role in a truly global dimension, that includes extending toward the south , South Africa, the other future powerhouse of Africa and towards the east to Egypt and the GCC areas that I think will also play a role in renewables in the future. 

As you will read in this next story Silver Spring a maker of smart grid equipment IPO window is shut because of market uncertainty's, well too bad everything seems to collapse suddenly around here, but our IPO window remains open even in bad times, that is the precious lot of energy producers and that is why they never go bust, safe for Enron but that's a different story. 

On the road to IPO, Silver Spring’s on an upswing

In an updated filing, smart grid company Silver Spring Networks reported its latest financial filings for the past six months ended June 30, 2011. For that time period the smart grid wireless network maker brought in revenues of $115.50 million, up from $21.74 million for the same period in 2010, and reported a net loss of $54.39 million, down from a loss of $77.03 million for the same period in 2010.

The updated results show steady financial progress for Silver Spring Networks, which indicated its plans to go public in an IPO back in July. In addition Silver Spring Networks reported that it had generated a positive gross profit of $6.52 million for the six month period in 2011, compared to a gross loss of $31.89 million for the same period in 2010, and gross losses for the full years 2008, 2009 and 2010.

Selling smart grid networks to utilities is a difficult businesses. A handful of large utilities — Florida Power & Light, PG&E and Modesto Irrigation District — make up the bulk of reported revenues, and the company’s deals take many months if not years to record. Silver Spring Networks has a backlog of deals in the works, for which it hasn’t yet recorded revenue, and as of June 20, 2011, Silver Spring said it had $412.7 million in deferred revenue.

However, Silver Spring Networks also isn’t yet profitable and is still recording net losses. As of June 30, 2011, the company had accumulated deficit of $422.8 million.

Over the next six months to a year the company will slowly be able to record that backlogged revenue and could start an upswing in time for its IPO. Well, that’s the good news on the IPO front. The bad news is that the IPO window has decidedly slammed shut due to all of the stock market fluctuations, we’re hearing until at least Labor Day. So it could be awhile.

Sourced :