Nextracker, Tracker Maker Closes Major Stock Offering at $24 Per Share
- Tracker maker Nextracker has closed its major stock offering at $24 per share, raising $638 million and significantly strengthening its position in the solar energy sector.
What happened?
Tracker maker Nextracker has closed its major stock offering at $24 per share, raising $638 million. The offering was secured by anchor investments from BlackRock and Norges Bank Investment Management, and will begin trading on the Nasdaq exchange under the symbol NXT. JP Morgan Chase was the lead advisor on the transaction.
Why does it matter?
The successful stock offering will significantly strengthen Nextracker to take advantage of the strong growth in the solar sector in the coming decade. With the offering, the firm has raised the upper limit of its valuation to $3 billion and will use the funds to expand its tracker and software offerings worldwide. The over $600 million IPO is the first big IPO in the year and reflects strong demand among investors for the firm's offerings.
What's next?
Nextracker currently has installed 70 GW of its tracker solutions worldwide, and is one of the few American champions in the solar sector. The firm will use the funds raised to further expand its presence in the market, while continuing to face strong competition from Chinese firms and other manufacturers from Europe, India and elsewhere. With the strong domestic backing, the firm is well-positioned to take advantage of the growth in the sector over the next decade.
