Real Goods Solar shares continue to drop after IPO

NEW YORK - Shares of Real Goods Solar Inc., which installs residential solar power systems, dropped for the second straight day since the company's initial public offering of Class A stock.

The Broomfield, Colo.-based company's IPO priced at $10 per share late Wednesday, the low end of the expected price range of $10 to $12 apiece. The IPO totaled 5.5 million shares, which was 500,000 more than expected.

In its first day of trading Thursday, Real Goods' stock dropped 12 percent to close at $8.80. On Friday morning, the shares lost an additional 20 cents, or 2.3 percent, to $8.60.

Real Goods, which was founded in 1978, said it has installed more than 2,400 residential and small commercial solar energy systems. The company has also sold solar products to more than 30,000 customers.

Real Goods planned to use some of the proceeds from the IPO to repay its parent, lifestyle media company Gaiam Inc., for costs to acquire and expand its business.

ThinkPanmure LLC served as the IPO's lead underwriter. Canaccord Adams and Broadpoint Capital also served as underwriters.

The underwriters have a 30-day option to buy up to 825,000 additional Class A shares to cover any over-allotments.

Real Goods shares trade on the Nasdaq Global Market under the symbol "RSOL." The company's IPO coincided with a more successful offering by pump and valve manufacturer Colfax Corp.

Colfax shares surged nearly 17 percent in their debut on Thursday after the company's IPO of 18.8 million shares priced at $18 apiece, above the expected price range. On Friday morning, the stock lost some of those gains as the broader market slumped — falling 40 cents to $20.60.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.