The IPO (Initial Public Offering) market has always been interesting to a large number of retail and institutional investors. There is one big reason - profitability. However, the activity has come to a standstill due to heightened volatility in a rising interest rate environment. One of the most notable projects in the beginning of 2023 is Nextracker stock IPO.
In this article we will discuss the key details of the Nextracker IPO: the history of the company, when is the Nextracker IPO date, Nextracker IPO price and everything you should know to make a decision whether to invest in it or not.
Nextracker is a leading provider of software and solar tracker solutions for solar power plants worldwide. Their innovative products allow solar panels to move with the sun and optimize plant performance and are used in both utility-scale and distributed-generation solar power plants.
While the company's history is somewhat incomplete, it is known that Nextracker was established in 2013 and acquired by Flex International Inc. for $330 million in September 2015 as a portfolio company of SJF, a venture capital firm that specializes in cleantech investments. Nextracker is credited with pioneering smart solar tracking technology, and they remain at the forefront of the industry through their engineering, design, and software innovation.
With 132 mechanical patents, 52 electronics and controls patents, and 171 software-driven yield improvement patents, Nextracker's comprehensive intellectual property portfolio protects its hardware and software products. The company has held the title of the world's top solar tracker company for seven consecutive years, with an average market share of 30%, as recognized by global research firms WoodMackenzie and IHS Markit. So it was about time to announce Nextracker IPO date and price.
Nextracker’s Public Listing Key Data and IPO Date
NXT IPO Date: 02/07/2023
IPO stock price: $24
Valuation at IPO: $638 mln
CEO: Dan Shugar
In April 2021, Nextracker submitted confidential IPO documents to the SEC during a booming IPO market. The decision was made in part due to the growing demand for solar power and renewable energy. Opting for a traditional IPO route, the process required due diligence of the business, financial reports, and an S-1 form. It also involved underwriting Nextracker's new securities, roadshows, collecting pre-IPO applications, and allocating funds, among other steps. All this time alternative energy investors kept asking “When is Nextracker going public?” The IPO process took two years of preparation before it went public with Nextracker IPO date being February 8th, 2023.
During the IPO, Nextracker sold 26.6 million shares of its Class A common stock at $24 per share, which was at the upper end of their indicated range of $20 to $23 per share. This valuation gave the company a value of over $3.5 billion. The IPO raised approximately 27.7 percent more than their estimated IPO proceeds of $500 million, which was based on pricing at the $21.50 mid-point of the range.
Following the IPO, Nextracker's stock rose by 27% in its trading debut, after raising $638 million. It is considered the biggest U.S. IPO since autonomous driving firm Mobileye raised $990 million in October. BlackRock and Norges Bank Investment Management made anchor investments in Nextracker, driving demand for shares. JPMorgan Chase was the lead advisor on the transaction, as per a regulatory filing.
On February 8 NXT stock closed with 36% growth in a day, so Nextracker IPO 2023 was considered to be successful and we can’t help but wonder if it’s worth investing in NXT now.
So What About Investing Now?
The prospects for the industry where Nextracker works seem positive. In recent years, the cost of solar energy has significantly decreased, making utility-scale solar one of the most cost-effective sources of wholesale energy production worldwide. As a result, the demand for solar energy has been on the rise. This trend is further fueled by the growing need for renewable energy, as countries, industries, and businesses strive to lower their carbon footprint and achieve ambitious decarbonization goals. With the rise of electrification, including the widespread adoption of electric vehicles and the replacement of natural gas with electricity in buildings and households, the demand for energy production, including solar energy, is expected to increase. Both the cost-effectiveness of solar energy and the growing demand for renewable energy are expected to drive the continued growth of the utility-scale solar market.
But here are some potential pros and cons of investing in Nextracker that you may want to consider.
- Nextracker commanded 30% of the global market in 2021. It is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants around the world, which is a rapidly growing industry.
- The company has a strong track record of innovation and design, as evidenced by its robust portfolio of intellectual property. For example, the company has recently introduced new software solutions that use machine learning and artificial intelligence to optimize solar plant performance and increase energy yield.
- Nextracker IPO was successful and the company's stock has seen a strong debut, indicating investor confidence in the company's future growth prospects.
- The company has several successful partnerships with leading solar power companies, which could help to drive continued growth and revenue.
- The solar power industry can be subject to regulatory and policy changes that may affect the demand for Nextracker's products and services. One notable example is the imposition of tariffs on imported solar panels by the Trump administration in 2018. This policy change led to a significant increase in the cost of solar panels and disrupted the solar industry supply chain, leading to job losses and a slowdown in solar installations in the United States.
- The company faces fierce competition from other solar power equipment makers, such as Array technologies, which commands 18% of the market.
Is Nextracker publicly traded?
Yes, Nextracker went public on February 8th, 2023, with an IPO that raised $638 million. It became the biggest IPO that year. You can find it under the ticker NXT on Nasdaq stock exchange.
How much does Nextracker worth?
As of April 7th, 2023, Nextracker’s market capitalization is $828.5mil. The company’s revenue in the last 12 months was $1457.6 mil and net income $50.9 mil.
What is Nextracker’s business?
Nextracker is a provider of solar tracking and control systems for solar power plants. Their products use advanced technology to track the sun's movement across the sky, which increases the amount of energy that solar panels can produce.