The sun is shining on Wall Street, and it is only about to get brighter. Leading solar company Array Technologies is about to make its public debut, beginning its life on the Nasdaq Exchange. Ahead of the big day, what do you need to know about the Array Technologies IPO?
Before we dive into the details, investors should know that this could be one of the hottest deals this week. Array Technologies is looking to raise $675 million at a $2.5 billion market capitalization. Talk about IPOs that could power your home, and your portfolio!
Here are a few other top things investors should know about the Array Technologies IPO:
- The company will start trading on the Nasdaq under the ticker symbol ARRY.
- It is the second-largest manufacturer of ground-mounting systems for solar energy. These systems essentially help solar panels move as they track the sun.
- According to Renaissance Capital, Array Technologies will price Oct. 14.
- When it prices, Array will offer 33.8 million shares at a range between $19 and $21. Almost 80% of this initial offering is coming from insiders like sponsor Oaktree Capital. Proceeds from shares offered directly from the company will help it pay down its debt.
- Its 12-month revenue through June came in at $975 million. Since its inception, the company has shipped over 21 gigawatts of its trackers. What do those numbers really mean? Importantly, we know that Array has a long growth runway ahead and is already profitable.
- Lastly, bookrunners on the IPO include Goldman Sachs, Credit Suisse and JPMorgan Chase.
While there is no denying that these basic facts make the Array Technologies IPO look appealing, look closer. There is even more to like than meets the eye.
Array Technologies IPO Looks Hot on Solar Craze
Importantly, solar stocks have been incredibly hot in recent weeks. As we have followed major rallies in the likes of SPI Energy (NASDAQ:SPI), Sunworks (NASDAQ:SUNW) and JinkoSolar (NYSE:JKS), it has become clear that renewable energy plays are trending higher. Why?
Well, thanks to the novel coronavirus, we have seen consumers start to care more about the environment. This focus on sustainability should continue to drive interest in environmental, social and governance (ESG) investing trends. Similarly, we have seen a mania in electric car stocks.
Plus, with the U.S. presidential election just around the corner, investors are already looking for the biggest portfolio takeaways. If former Vice President Joe Biden wins, Wall Street has determined that eco-friendly equities will be winners. The Democrat has promised to invest $2 trillion in sustainable energy projects, and he has also explicitly supported expanding the infrastructure for clean energy. This could mean that Array Technologies is about to soar.
If you are not a solar expert, know that tracking systems like those offered by Array Technologies were used in 70% of all ground-mounted solar projects in 2019. These systems help increase energy production, working to optimize exposure to the sun.
As more and more consumers turn to solar, and as federal support backs new projects, look for the Array Technologies IPO to dominate.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.