Nextracker Signs Up $24 Per Share - This Is A Good Sign For The IPO Market

People with knowledge of the transaction told Trade Algo that the initial public offering of solar technology company Nextracker was priced just above the company's stated range of $20 to $23 per share.

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In a statement earlier Wednesday morning, sources who declined to be identified talking about the process for Trade Algo reported that the order book for Fremont, California-based Nextracker was "well subscribed," which meant that demand allowed the firm to exceed expectations on pricing.

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In the company's filing last week, it said it would be seeking a maximum of $535 million for its IPO, but the company ultimately filed for $405 million instead, which means the company is expecting to raise about $638 million through the sale of 26.6 million shares at $24 each. There are also “greenshoe” options that allow bankers to sell more stock prior to the so-called greenshoe option, according to the people who spoke with us.

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Despite the fact that the IPO market has been a moribund for some time, this is a good sign. After the Federal Reserve announced last year that it would be increasing interest rates to their highest levels in decades, proceeds from public listings dropped 94% last year. After listing in 2020 and 2021, many tech companies, including some of the ones listed in 2020 and 2021, are still underwater, with investors losing confidence in their shares.

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It is reasonable to consider Nextracker's IPO one of the most important public offerings of the year since it is poised to raise the largest amount of money in the U.S. Initial Public Offering since Mobileye raised $990 million through its own IPO earlier this year.

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Earlier this year, book-runners acquired anchor investors, including BlackRock and Norges Bank Investment Management, for Nextracker, which helped to drive demand for shares, according to the people.

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As per one of the people who are familiar with Nextracker's plans, the company will begin trading under the symbol NXT on the Nasdaq exchange on Thursday morning.

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It consists of hardware and software that allows solar panels to follow the movement of the sun, thereby increasing the efficiency of solar power plants by allowing them to follow the movement of the sun. The company was bought by Flex, a manufacturer of solar panels.

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It has been revealed that JPMorgan Chase served as the lead advisor in connection with the transaction.