Array Technologies shares close 66% higher after Nasdaq debut



© Reuters.

(Reuters) – Shares of Array Technologies surged nearly 66% in their Nasdaq debut on Thursday, valuing the solar power equipment maker at more than $4.6 billion, while underscoring investor appetite in a red-hot market for initial public offerings.

The Albuquerque-based company’s shares opened at $29.50 after its upsized IPO was priced at $22 per share, above the upper end of its target range. Array shares rose 65.7% to close trading at $36.45.

Backed by asset manager Oaktree Capital, Array raised about $1.05 billion in its IPO after selling 47.5 million shares. Its IPO had earlier aimed to sell 45 million shares at a price range of between $19 and $21 per share.

Array’s IPO comes as global energy consumption is shifting away from fossil fuels to sustainable sources such as solar and wind.

It is also in line with the recent trend of strong investor appetite for new listings, with 2020 on track to be the best year for IPOs since the dotcom boom of 1999 and 2000.

“We’re really at the early innings with the place solar can go,” Array Chief Executive Jim Fusaro said in an interview. “Utility scale solar is at cost parity with and other industrial plants, add that to global trends with renewables and focus on decarbonization.”

Array, founded in 1989, produces steel supports, electric motors and controllers, gear boxes and other solar energy equipment. As of the end of June, the company had $749.2 million in debt.

Oaktree Capital bought an undisclosed stake in Array in 2016.

Goldman Sachs (NYSE:), JP Morgan, Guggenheim Securities and Morgan Stanley (NYSE:) are among the lead underwriters of the offering.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link