LATHAM, N.Y. – Plug Power Inc., an on-site power generation developer, went public October 29, offering 6 million shares at $15 apiece. The company’s stock priced at the high end of its $13 to $15 filing range.
Underwritten by Goldman Sachs & Co., Hambrecht & Quist, Merrill Lynch & Co. and FAC/Equities, the initial public offering left 42.2 million shares of stock outstanding.
Venture backers included DTE Energy Co., Mechanical Technology Inc. and General Electric Corp. There were no selling shareholders.
Plug Power develops on-site power generation systems for commercial and residential establishments as well as for automotive applications. The company uses proton exchange membrane (PEM) fuel cells to generate electricity and targets rural homes and businesses that use excessive amounts of electricity.
Plug Power plans to use the expected $77.3 million generated from the IPO for manufacturing equipment and for general corporate purposes, including working capital, research and product development, market development and potential acquisitions.
Plug Power has never been profitable, losing $4.3 million in the six months ended June 30, 1998 and $14.7 million in the six months ended June 30, 1999.
George McNamee, a director and chief executive officer at Mechanical Technology, has served as the company’s chairman of the board since June 1997. Anthony Earley, Jr., a director and chief executive officer at DTE Energy, and Larry Garberding, a director, executive vice president and chief financial officer at DTE Energy, both joined the company’s board of directors in June 1997. Robert Nardelli, president and chief executive officer at GE Power Systems, a division of General Electric, began his tenure on the board upon the closing of the offering.
Plug Power – Selected Financial
(in thousands, except per share data)
June 27, 1997 Year Ended Six Months Ended June 30
to December 31, 1997 December 31, 1998 1998* 1999*
Total revenue 1,194 6,541 2,549 3,696
Net loss -5,903 -9,616 -4,330 -14,740
Net loss per share -0.62 -0.71 -0.4 -0.69