Solar tech company Nextracker raises $638M in US IPO

Nextracker, which provides solar tracking systems for commercial and utility solar power plants, has raised $638 million in a US IPO, which is above its target range, and the number of shares sold has increased.

Nextracker said it sold 26.6 million Class A shares of common stock at $24 each, giving the Fremont, California-based company a valuation of over $3.5 billion. This is at the upper end of the specified range of $20 to $23 per share.

The deal extension came at a time when markets were frozen by volatility and rising interest rates.

Nextracker is scheduled to go public on the Nasdaq Global Select on February 9 under the ticker “NXT” and the offer will close on February 13.

Nextracker also provided underwriters with an option to purchase an additional 4 million shares.

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J.P. Morgan, BofA Securities, Citigroup, and Barclays acted as joint lead underwriters of the offering.

Solar energy is the fastest growing sector in the renewable energy industry as the cost of solar energy production has dropped dramatically over the last decade and most importantly, another strong jump in solar panel efficiency is planned in the next few years, making them the undisputed leader.

Nextracker is trying to capitalize on the growth of the market by selling related trackers that improve the efficiency of solar energy production by tracking the sun.