Array Technologies: The Newest Solar Company Looking to Come Public

ATI Intermediate Holdings, or Array Technologies (its subsidiary), has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. No pricing details were mentioned in the filing, but the offering is valued up to $100 million, although this number is normally just a placeholder. The company intends to list its shares on the Nasdaq under the symbol ARRY.

The underwriters for the offering are Barclays, Credit Suisse, Goldman Sachs, Guggenheim Securities, JPMorgan, Morgan Stanley and UBS Investment Bank.

This is one of the world’s largest manufacturers of ground-mounting systems used in solar energy projects. Its principal product is an integrated system of steel supports, electric motors, gearboxes and electronic controllers commonly referred to as a single-axis “tracker.” Trackers move solar panels throughout the day to maintain an optimal orientation to the sun, which significantly increases their energy production.

Solar energy projects that use trackers generate up to 25% more energy and deliver a 22% lower levelized cost of energy than projects that use “fixed tilt” mounting systems, according to BloombergNEF.

Trackers represent between 10% and 15% of the cost of constructing a ground-mounted solar energy project, and roughly 70% of all ground-mounted solar energy projects constructed in the United States during 2019 utilized trackers.

In terms of its finances, the firm had revenues of $647.9 million for the fiscal 2019 full year, an increase from $290.8 million in 2018. During the same time, gross profit increased to $150.8 million in 2019, up from $11.6 million in 2018. On the books, Array Technologies cash and restricted cash was $361.3 million at the end of 2019, an increase from $40.8 million at the end of 2018.

The company intends to use the net proceeds from this offering for working capital and general corporate purposes. Some stockholders may be selling shares in this offering as well, and the company will not receive any proceeds from these.