Array Technologies shares close 66% higher after Nasdaq debut

In this news, we discuss the Array Technologies shares close 66% higher after Nasdaq debut.

(Reuters) – Shares of Array Technologies jumped nearly 66% on their Nasdaq debut on Thursday, valuing the solar power equipment maker at more than $ 4.6 billion, while highlighting the investor appetite in a hot market for initial public offerings.

Shares of the Albuquerque-based company opened at $ 29.50 after it went public at a price of $ 22 per share, above the upper end of its target range. Array shares rose 65.7% to close trading at $ 36.45.

Backed by asset manager Oaktree Capital, Array raised around $ 1.05 billion on its IPO after selling 47.5 million shares. Its IPO previously aimed to sell 45 million shares at a price range of $ 19 to $ 21 per share.

Array’s IPO comes as global energy consumption shifts from fossil fuels to sustainable sources such as solar and wind power.

It also follows the recent trend of a strong investor appetite for new listings, with 2020 on track to be the best year for IPOs since the dotcom boom of 1999 and 2000.

“We’re really at the start of the heats with how much solar can go,” Jim Fusaro, CEO of Array, said in an interview. “Utility-scale solar power is on par with natural gas and other industrial facilities, add that to global trends with renewables and focus on decarbonization.”

Array, founded in 1989, produces steel brackets, electric motors and controllers, gearboxes and other solar power equipment. At the end of June, the company was in debt of $ 749.2 million.

Oaktree Capital purchased an undisclosed stake in Array in 2016.

Goldman Sachs, JP Morgan, Guggenheim Securities and Morgan Stanley are among the main subscribers of the offer.

Reporting by Niket Nishant in Bengaluru and Chibuike Oguh in New York; Edited by Anil D’Silva, Marguerita Choy and Cynthia Osterman

Original © Thomson Reuters Corporation

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