RPT-IPO VIEW-Codexis seen as good sign for green IPOs

* Codexis IPO lukewarm but signals investors open to risk

* Market waits for Tesla, Silver Spring Networks to debut
(Repeating item that initially moved on Friday)

By Poornima Gupta and Clare Baldwin

SAN FRANCISCO/NEW YORK, April 23 (BestGrowthStock) – Biofuel
company Codexis Inc (CDXS.O: ), the first green initial public
offering this year, could blaze a trail for other clean
technology companies despite a lukewarm response from
investors.

Codexis — a low-profile and as yet unprofitable company —
did not set the public market on fire last week, but the fact
that it was able get a deal done is a positive sign for the
green sector, analysts said.

“It’s a very bullish and positive signal,” said Sheeraz
Haji, president of Cleantech Group, which tracks the green
market. “It got out at a valuation that was acceptable. It
signals that there is a hunger in public equity investors for
cleantech IPOs.”

Many other green companies are waiting in the wings,
gauging market conditions and preparing to step out.

Some of the green IPOs expected this year are high-profile
but money-losing electric carmaker Tesla Motors, solar company
Solyndra and smart grid company Silver Spring Networks.

Tesla and Solyndra are among those that have registered for
IPOs. Silver Spring Networks is also preparing to file its
registration statement and has already picked underwriters,
according to three sources familiar with the plans.

For now, Codexis — which sells enzymes to make industrial
processes cleaner and faster and counts oil major Royal Dutch
Shell Plc (RDSa.L: ) as its investor in the biofuel space — has
given these companies an insight into the interests of
investors.

Matt Therian, analyst with Connecticut-based Renaissance
Capital, said while investors are defensive right now, there
are some who are willing to bet on risky ventures.

“Codexis getting a deal done shows that there is demand for
cleantech IPOs,” he said. “There is risk appetite out there.”

SOME RESURRECTING DELAYED IPOS

Codexis raised only $78 million by selling 6 million shares
for $13 each on Thursday.

Shares of Codexis, priced at the low end of forecast,
closed up 2 percent at $13.26 on Thursday on Nasdaq. The shares
closed up nearly 6 percent at $14.04 on Friday.

Their first-day performance was far removed from last
year’s blockbuster debut of lithium-ion battery maker A123
Systems (AONE.O: ), which rose 50 percent.

Codexis was not the only company that got a lukewarm
response from investors on Thursday.

Four of the seven IPOs, spanning multiple sectors, that
traded on Thursday priced below the expected range. Two priced
at the bottom of the range, and one priced at the midpoint.

Profitable and established companies still gather the most
interest and dollars.

Recent winners in the IPO market this year include
profitable broadband chipmaker MaxLinear Inc (MXL.N: ). Shares of
the company rose nearly 34 percent on its debut in late March.

Still, the market for IPOs has improved from the beginning
of the year, when many companies cut, postponed or quit their
efforts. Investors are, however, still price-sensitive.

This week was the busiest for the IPO market since November
2007, when eight IPOs listed on U.S. exchanges, according to
Thomson Reuters data.

Some of the companies that postponed IPOs earlier this year
are once again planning to enter the market.

Chinese solar company JinkoSolar, which shelved its IPO
plans in February, amended its regulatory filing this month, a
sign it may take advantage of the improving market.

Analysts expect investors will welcome offerings from
venture-backed companies Silver Spring Networks and Tesla, even
though both the markets they serve have yet to take off.

“You have a lot of good companies just sort of sitting on
the sidelines waiting to go public,” said Josh Lerner,
investment banking professor at Harvard Business School.

The venture pipeline is “the strongest it has been in
years,” he said.
(Reporting by Poornima Gupta; Editing by Tim Dobbyn)

RPT-IPO VIEW-Codexis seen as good sign for green IPOs