With transmission grids struggling with each new summer heatwave, an aspiring California-based company pushing off-gridmicroturbines, Capstone Turbine Corp., launched a successfulinitial public offering (IPO) Thursday, raising $130 million, andclosing the first day of trading, June 29, at almost $48/share,three times the initial asking price of $16. Friday’s close was$45.06 after hitting a high for the day of $49-plus.

The Woodland Hills, CA-based firm was founded in 1988 to createcleaner motor vehicles and has yet to show a profit, having lost$29 million last year, but it has a commercially availablemicroturbine that runs on everything from natural gas to sour gasin petroleum production fields. Capstone generated revenues of$6.69 million last year while withstanding its biggest loss ever.

The company plans to use the IPO proceeds for capital toolingand manufacturing equipment, expanding its sales/marketing efforts,continuing product development and payment to one of its majorbackers, New Zealand-based Fletcher Challenge Limited, “as part ofa buyback of marketing rights and for general corporate purposes,”Capstone said in its IPO filing of March 22.

Richard Nemec, Los Angeles

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