FTCI Stock IPO: What to Know as FTC Solar Preps to Come Public

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FTC Solar (NASDAQ:FTCI) plans to offer 18.4 million shares priced between $18-$20 a piece in its initial public offering (IPO) tomorrow. The Austin, Texas company hopes to raise $350 million in the transaction.

Solar energy panels are arranged in a green field under a sunny sky.

Source: Diyana Dimitrova / Shutterstock.com

Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a global provider of solar tracker systems, technology, software and engineering services. That tracking mechanism increases energy production at solar power installations by optimizing solar panel orientation to the sun. FTC has received at least $50 million from investors.

With sales and marketing operations in Asia, North Africa, the Middle East and Australia, it intends to establish operations in Europe and Latin America. The company’s Voyager brand has 11% market share in the U.S. FTC Solar wrapped up 2020 with $109 million in contracts and awarded orders on its books. Off to a fabulous start in 2021, it generated an additional $227 million in deals through the middle of April. The company had revenue of $187.4 million in 2020, compared to $53.1 million in the previous fiscal year.

Research published last year by Fortune Business Insights showed the global market for solar trackers was estimated at $9.3 billion in 2019 and is expected to exceed $22 billion by 2027. Driving that 12.6% compound annual growth rate is a global move to cut carbon emissions with a shift to renewable energy sources, including solar.

FTCI Stock Debuts in Hot Solar Market

Solar stocks are finally hot, after a decade of lagging the market.

Companies making solar panels were laggards because of deflation. Costs came down, but so did prices. Companies had to run hard to stay in place. They grew but failed to expand margins.

The environmental disasters of 2020, however, put a different gloss on things. Now, everyone wants a green revolution. Profits, not just promises, seem to be on the horizon.

For FTCI stock investors, timing could be everything. With 72.2 gigawatt hours worth of solar energy generation (up from 891 gigawatt hours in 2009), mass adoption is right around the corner.

President Joe Biden’s support of renewable energy is seen by solar industry observers as a much-needed catalyst for shares in the segment. Top segment exchange-traded fund, Invesco Solar ETF (NYSEARCA:TAN), is down 10.6% year to date.

On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News, McKinsey & Co. and McDonald & Company Investments.


Article printed from InvestorPlace Media, https://investorplace.com/2021/04/ftci-stock-ipo-what-to-know-as-ftc-solar-preps-to-come-public/.

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