Wall Street got what Bloom Energy is about, CEO says after the IPO

Wall Street could not get enough of Bloom Energy Corp. Wednesday, with shares increasing up to 50% after an initial public offering that CEO and founder K.R. Sridhar credited to his company's ability to explain his goal.

Investors "have a very clear understanding of the size of the market, they understand what is the opportunity," Sridhar told MarketWatch in a telephone interview.

Other solutions to growing global energy needs are "Band-Aids" that are not as reliable, resilient to power fluctuations, or durable, he said.

Sridhar went on to say that Bloom Energy

BE, + 51.90%

will be positive in terms of cash flow and will be GAAP compliant this year, and sustainably. The company is already profitable from the second quarter, he said.

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Bloom set Tuesday night its IPO, selling 18 million shares at $ 15 a piece, the peak of a range of $ 13 – $ 15 set earlier in July, to raise $ 270 million. The shares opened another 30% at the New York Stock Exchange on Wednesday afternoon, and quickly outperformed them at the end of the trading day.

Bloom Energy manufactures solid oxide fuel cells that are used in fixed servers the size of a typical shipping container. Servers, placed at customer sites, convert natural gas or biogas into electricity through electrochemical reactions that result in lower emissions than traditional energy production.

As a sign of confidence, nearly one-third of the shares reserved for the IPO for Board members and employees and the Bloom Energy family were solo, a said Mr. Sridhar. Bloom's lenders included venture capital groups such as Kleiner Perkins Caufield & Byers and New Enterprise Associates.

"We had to limit it," said the CEO. It has been very positive that board members and employees do not view the IPO as an exit strategy, but want more, he said.

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Sridhar said Bloom was constantly looking for opportunities in other markets, having recently entered South Korea and present in India and Japan.

Sridhar kept track of potential acquisitions and said the current business climate, with concerns over trade wars and rising commodity prices, is unfortunate, but not for Bloom .

"We have several suppliers in several countries, including the United States," he said. "This is not a big problem for us at this point."