On February 9th, Nextracker announced that it had priced its upsized initial public offering (IPO) of 26,600,000 shares of its Class A common stock at an IPO price of $24.00 per share. The offering is expected to close on February 13th, subject to customary closing conditions. Underwriters have been granted a 30-day option to purchase up to an additional 3,990,000 shares of Common Stock at the initial public offering price, less underwriting discounts and commissions.
Nextracker is a unit of electronic-equipment maker Flex Ltd. (FLEX). It provides integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects. The company’s products enable solar panels to track the sun across the sky, optimizing performance.
The firm had revenue of about $1.5 billion with net income of $51 million in its last fiscal year. As of September 2022, Nextracker had shipped 70GW of tracker technology worldwide, cumulatively worth over US$67 billion. During the six-month period prior to September 30, 2022, the company saw revenues of more than $870 million and gross profits of $114 million.
JP Morgan and BofA Securities are serving as joint lead bookrunners on the deal, with Truist Securities, HSBC, BNP PARIBAS, Mizuho, ScotiaBank and KeyBanc Capital Markets as joint bookrunners. SMBC Nikko, BTIG, UniCredit, Roth Capital Partners, and Craig-Hallum are co-managers. Flex Ltd. has engaged PJT Partners to act as an independent financial advisor for their offering.
Nextracker plans to use the net proceeds from the offering for general corporate purposes including working capital, capital expenditures, research and development, and potential acquisitions.
The company will begin trading on the Nasdaq exchange under the ticker symbol NXT on February 9th. Flex Ltd. will continue to control the company, with TPG (TPG) remaining a major investor. Copies of the prospectus, when available, may be obtained from J.P. Morgan Securities LLC, BofA Securities, Citigroup, and Barclays Capital Inc.
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