Tracker Maker Nextracker Set To Close Major Stock Offering

Leading tracker and software firm Nextracker has priced its stock offering at $24, the upper end of the price band indicated earlier. The pricing indicates strong demand among investors, besides the strong outlook for growth in it’s home market in North America and beyond.

Expected to raise about $638 million by selling 26.6 million shares at $24 each, well above the $535 million upper limit the company had mentioned in a filing last week, the Nextracker IPO is the first big IPO in the year.

Bookrunners first secured anchor investments in Nextracker from BlackRock and Norges Bank Investment Management. Nextracker will begin trading on the Nasdaq exchange Thursday morning under the symbol NXT.

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JP Morgan Chase was the lead advisor on the transaction, according to a regulatory filing.

Nextracker, a subsidiary of manufacturer Flex, has enjoyed a strong momentum on sales, winning large contracts across the world in recent months. Its key offering of solar trackers have seen a strong market based on the higher efficiency of modules as well as use of bifacials both, which drives the use case for sing trackers further.

As a leading global firm in the segment, Nextracker faces strong competition from the inevitable Chinese firms, besides a smattering of firms from Europe, India and elsewhere. The firm has installed 70 GW of its tracker solutions worldwide, and as of the few American champions in the solar sector, has the added advantage of strong domestic backing if required. The tracker business allows for a strong locational advantage for manufacturers, and Nextracker has  made the most of it.

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The IPO process was effectively set in motion after parent FLEX agreed to a $500 million stock sale in Nextracker to investment fund TPG Rise at a $3 billion valuation, back in February 2022.