Energy Recovery Launches IPO

By George Avalos, Contra Costa Times, Walnut Creek, Calif.

Jul. 2–SAN LEANDRO — Energy Recovery Inc.’s shares debuted on Wednesday and quickly soared 18 percent, marking an auspicious launch for the East Bay water desalination company.

In mid-day trades, Energy Recovery was up about $1.50 a share at around $10. Trading under the ticker symbol ERII, the company’s shares were initially priced at $8.50.

The initial public offering for the company raised about $119 million. The company’s market value was roughly $486 million during the first day of trading.

San Leandro-based Energy Recovery makes devices used by the water desalination industry. The company’s technology is used to drive sea water through filtering membrane to produce fresh water.

During 2007, the company earned $5.8 million on revenues of $35.4 million, according to a regulatory filing. Profits rocketed 143 percent and revenues jumped 77 percent compared with 2006.

However, Energy Recovery’s profits eroded during the first quarter of 2008.

The company earned $947,000 on revenues of $9.1 million in the first quarter of 2008 that ended March 31. Profits fell 15 percent and revenues rose 28 percent compared with the same three months in 2007.

George Avalos covers jobs, economic development, commercial real estate, finance and oil companies. Reach him at 925-977-8477 or gavalos@bayareanewsgroup.com

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