Israeli solar energy company SolarEdge Technologies has filed a prospectus to issue 2,000,000 new shares, which at its current share price would raise more than $600 million. The company will also give underwriters Goldman Sachs and J.P. Morgan and Morgan Stanley the option to buy another 300,000 shares, so that the amount raised might grow by 15%, Trend reports with reference to Globes.
SolarEdge's share price has risen by 19% since the start of the year and is nearing the peak at which it was trading last November. The share price closed up 5.83% yesterday at $334.16, giving a market cap of $17.772 billion. The share price is down 6.18% in premarket trading. SolarEdge, managed by CEO Zvi Lando, provides power optimizers, solar inverters and monitoring systems for photovoltaic arrays.
At the end of 2021, the company had $1.18 billion in cash and a long term loan of $622 million to holders of convertible bonds. According to the prospectus, SolarEdge plans using the money raised for general business purposes and possibly acquisitions. In 2018-2019, SolarEdge acquired three companies - Korean company Kokam, Israeli company Gamatronic and Italian company SMRE - which enabled it to enter new markets but has made no acquisitions since.
SolarEdge is the second most valuable Israeli publicly traded company on Wall Street after Check Point. Revenue rose 34.6% to nearly $2 billion in 2021 with GAAP net profit of $169 million and non-GAAP net profit of $273 million, up 21.6% from 2020.