SolarEdge Technologies, an Israel-based solar inverter maker backed by conglomerate General Electric, will raise $126m when it floats on Nasdaq, after pricing its initial public offering at $18 a share yesterday.
The company will issue 7 million shares, and the underwriters have the 30-day option to buy a further 1.05 million shares, which would boost the size of the offering to $144.9m.
SolarEdge has developed an optimised inverter system for solar photovoltaic systems which it claims maximises power generation while simultaneously reducing cost. It is equipped with a cloud-based monitoring platform and can be used in residential and small-scale utility systems.
GE Capital, the financial services subsidiary of General Electric, participated in a 2009 series B round for the company, which has raised $96.9m since it was founded in 2006.
The largest shareholders in SolarEdge are Opus Capital, Genesis Partners and Pacven Walden Ventures, each of which hold a 14.6% stake that will be diluted to 11.6% through the IPO. Norwest Venture Partners, the venture firm funded by bank Wells Fargo, holds a 10.6% share that will be diluted to 8.4%.
Other notable shareholders in SolarEdge include Lightspeed Venture Partners which will hold a 9.15% stake post-IPO, Vertex Venture Capital (4.7%) and ORR Partners (4.35%).
SolarEdge has shipped 1.3 GW of inverters since 2010. It cut losses from $28.2m to $21.4m in 2014 while increasing revenues 69% year on year from $79m to $133.2m.
Goldman Sachs and Deutsche Bank Securities are the joint book-running managers for the offering, while Needham & Company, Canaccord Genuity and Roth Capital Partners are serving as co-managers. The IPO is expected to close by March 31.