Array Technologies Inc. rose 66% in its trading debut after its expanded initial public offering raised $1.05 billion for the solar company and its largest shareholder.
Shares of the company, a provider of solar-tracking solutions for utility-scale projects, closed at $36.45 Thursday in New York trading. Array Technologies has a market value of about $4.7 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.
The public debut of Array Technologies comes amid a surge in investor interest for green stocks and equities with an ESG bent. Stocks of several solar companies have hit all-time highs this month as anticipated industry growth could be super-charged under a potential Joe Biden presidency. Biden is aiming to eliminate carbon emissions from the power sector by 2035.
“What we do is a catalyst for decarbonization,” Jim Fusaro, chief executive officer of Array Technologies, said in an interview. He pointed to several “mega-trends” boosting solar, including electrification, the retirement of coal-fired plants and solar power becoming cost-competitive in many markets.’
“We’re really in the early innings,” Fusaro said.
BloombergNEF projects 10 gigawatts of utility-scale solar will be installed in the U.S. in 2020, the biggest year for the sector since 2016.
Array Technologies sold 7 million shares Wednesday for $22 each after marketing them for $19 to $21. ATI Investment Parent LLC, an entity controlled by Oaktree Capital Group LLC, sold 40.5 million shares in the offering. Array Technologies, based in Albuquerque, New Mexico, had earlier increased the size of the sale from 33.75 million shares.
ATI will own most of the company’s stock after the listing, according to its filings.
For the six months ended June 30, Array Technologies had net income of $76 million on revenue of $553 million, according to its filings.
The offering was led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Guggenheim Securities and Morgan Stanley. The shares are trading on The Nasdaq Global Market under the symbol ARRY.
(Updates with CEO’s comments in fourth paragraph)