Energy Recovery: a cleantech deal hits the IPO market

Posted Jul 3rd 2008 12:40PM by Tom Taulli
Filed under: Initial Public Offerings

So far this year, it's been horrible for the IPO market. In fact, in Q2 there were no venture-backed offerings.

But, going into July, there is some hope. For example, Energy Recovery (NYSE: ERII) was able to pull of its IPO, pricing the deal at $8.50. On its first day of trading, the stock ended at $9.83.

Founded in the early 1990s, Energy Recovery develops systems that capture and recycle energy from desalination. The company says that its main product – PX Pressure Exchanger (PX) – conserves up to 98% of the energy.

And, in terms of market coverage, PX systems are installed in over 300 desalination plants. As a result, Energy Recovery's growth rate has been particularly strong. Revenues have gone from $4 million in 2003 to $35.4 million in 2007.

The underwriters on the IPO included Citi (NYSE: C) and Credit Suisse (NYSE: CS). What's more, you can locate the prospectus at the SEC website.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Tags: Energy Recovery, EnergyRecovery, inthenews, IPOs