Oaktree-backed solar firm Array Technologies’ IPO raises $1.05 billion1 min read . Updated: 15 Oct 2020, 02:06 PM IST
The company increased the size of the sale from 33.75 million shares on Tuesday
Solar acompany Array Technologies Inc. and its largest shareholder raised $1.05 billion after increasing the size of an initial public offering and pricing it above a marketed range.
The company, a provider of solar-tracking solutions for utility-scale projects, sold 7 million shares Wednesday for $22 each after marketing them for $19 to $21 apiece, according to a statement. ATI Investment Parent LLC, an entity controlled by Oaktree Capital Group LLC, sold 40.5 million shares.
The company, based in Albuquerque, New Mexico, increased the size of the sale from 33.75 million shares on Tuesday. Array Technologies has a market value of about $2.8 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.
ATI will own most of the company’s stock after the listing, according to its filings.
The public debut of Array Technologies comes amid a surge in investor interest for green stocks and equities with an ESG bent. Stocks of several solar companies have hit all-time highs this month as anticipated industry growth could be super-charged under a potential Joe Biden presidency. Biden is aiming to eliminate carbon emissions from the power sector by 2035.
BloombergNEF projects 10 gigawatts of utility-scale solar will be installed in the U.S. in 2020, the biggest year for the sector since 2016.
For the six months ended June 30, Array Technologies had a profit of $76 million on revenue of $553 million, according to its filings.
The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Guggenheim Securities and Morgan Stanley. The shares are expected to begin trading Thursday on The Nasdaq Global Market under the symbol ARRY.