Today, FTC Solar (NASDAQ:FTCI) began trading publicly. Shares of FTC Solar were up nicely in early trading today, up as much as 19% before paring gains. FTCI stock still closed higher by nearly 10%.
This IPO of a major solar/renewable energy play is the first of the year. Accordingly, given the increased interest in renewables right now, today’s move may be unsurprising to many investors.
FTC’s business model is centered on providing advanced solar tracking systems. These are marketed under the company’s Voyager brand. These solar tracking systems help move panels throughout the day to maximize the energy input from the sun.
Accordingly, this company is a pure-play on the growth in solar energy investors are banking will continue over the long term. Given the massive investment that’s going into renewable energy today, this is a segment many growth investors have honed in on of late. Additionally, political support for solar energy has driven outsized demand for this IPO today.
Here’s more on what investors may want to know about FTC Solar’s IPO debut.
FTCI Stock Takes Off in Debut
- Yesterday, FTC Solar announced the pricing of its IPO at $13 per share.
- Additionally, the company announced that 19.8 million shares of common stock would be issued.
- As a result, FCT Solar raised more than $250 million in this offering.
- The company expects to use these proceeds for general corporate purposes.
- An over-allotment option for underwriters is part of this offering. Accordingly, underwriters have the option to purchase up to an additional 2.97 million shares at the offering price.
- The underwriters on the deal include Barclays (NYSE:BCS), Credit Suisse (NYSE:CS) and UBS Investment Bank.
- The company’s current market capitalization is around $1.2 billion at the time of writing.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.