National Retail Supplier Launches IPO, Seeking to Raise $60 Million

Spark Energy has filed with the SEC additional information regarding its initial public offering, and now has disclosed the amount it is attempting to raise.

This morning, Spark also said that it launched the IPO.

Spark expects net proceeds from the offering to be approximately $52.3 million, after deducting estimated underwriting discounts and commissions, structuring fees and estimated offering expenses of approximately $7.7 million, in the aggregate.

Expected net proceedings would be approximately $60.7 million if underwriters exercise an option to purchase up to an aggregate of 450,000 additional shares of the Class A common stock.

Spark maintained its estimate from an earlier preliminary prospectus that it will increase its customer count on a gross basis by an average of 15,500 customers per month during the forecast period covered by the prospectus.

This rate is based upon historic customer growth rates during periods of increased customer acquisition spending.

The updated prospectus filed on July 11 included newer data concerning customer growth to date in 2014. Spark said that, through the first five months of 2014, it has added approximately 19,700 customers per month, of which approximately 12,800 were natural gas customers and 6,900 were electricity customers. "This substantial increase in natural gas customers relative to electricity customers is based on our recent growth in the California gas market in the first five months of 2014," Spark said

For additional details regarding Spark's business plans and strategy, click here for our story on its preliminary prospectus