Investors excitement around energy transition was borne out in the successful upsized IPO from Flex Ltd (FLEX) spinout Nextracker Thursday on its public listing. The company, which will trade under the ticker NXT sold 14% more shares and raised 28% more in proceeds than its original terms. Nextracker provides integrated solar tracker and software solutions to enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance. NXT raised $638 million by offering 26.6 million shares at $24, above the range of $20 to $23.
NXT IPO Highlights
- Underwriters: J.P. Morgan BofA Securities Citi Barclays Truist Securities HSBC BNP Paribas Mizuho Securities Scotia Capital KeyBanc Capital Markets SMBC Nikko BTIG UniCredit Capital Markets Roth Capital Craig-Hallum Capital Group
- Headquarters Fremont, CA
- Founded 2013
- Employees 550
- Website: Transform Your Solar Plant Performance | Nextracker
On it’s first day shares of Nextracker opened at $30.31 before rising to a high of $30.84. The stock closed at $30.46, up 27% on it’s first day of trading.
Nextracker is the largest US IPO since Mobileye (MBLY) in October 2022, and the largest solar company to go public since Shoals Technologies Group (SHLS) in January 2021.
Nextracker (NXT) had planned to raise $500 million at a $3.1 billion market cap but the excitement from investors saw it raise $638 million by offering 26.6 million shares at $24, above the range of $20 to $23. Compared to its original terms, the company sold 14% more shares and raised 28% more in proceeds than anticipated. The offering was 100% synthetic secondary, and new investors indicated on 20% of the deal.
Nextracker has shipped approximately 70 GW of its solar tracker systems as of September 30, 2022 to solar project developers, owners, and engineering firms. The company is profitable and growing, though it is exposed to rising commodity and logistics prices.
J.P. Morgan, BofA Securities, Citi, Barclays, Truist Securities, HSBC, BNP Paribas, Mizuho Securities, Scotia Capital, and KeyBanc Capital Markets acted as joint bookrunners on the deal.
From The TradersCommunity News Desk