GT Solar shares fall as much as 15 percent in debut

LOS ANGELES (Reuters) - GT Solar International Inc's SOLR.O shares fell as much as 15 percent in the solar energy equipment maker's market debut on Thursday, a day after its initial public offering priced at the mid-point of the forecast range.

The stock's debut came as the broader U.S. market slid more than 1 percent, dragging down solar stocks across the board.

Investors have shunned solar stocks in recent weeks due to concerns about key government subsidies in Spain and the United States and a weakening global economy that could hamper demand for renewable energy sources.

GT Solar's market debut was no exception. The stock was down $1.50, or 9.1 percent, at $15 in noon trade after pricing at $16.50 per share, within its estimated range of $15.50 and $17.50 a share.

The stock hit a low of $14.05 earlier in the session.

The Merrimack, New Hampshire-based company sold 30.3 million shares owned by stockholders GFI Energy Ventures LLC and Oaktree Capital Management LP for about $500 million.

The company does not plan to pay dividends on its common stock for the foreseeable future, other than the $90 million dividend to be paid to existing shareholders.

The fact that the IPO's proceeds are going to stakeholders rather than the company itself is one reason for the stock drop, according to one IPO watcher.

"They priced it too high. Investors don't like a $600 million bailout with nothing going to the company," said Francis Gaskins, president of IPOdesktop.com. "But if you were in their shoes you would be happy to cash out."

The lead underwriters on the offering were Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) and UBS Securities.