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Flex Ltd. (NASDAQ:FLEX) spinout Nextracker (NXT), a provider of solar panel tracking technology, has upsized its proposed initial public offering to $500M from $100M.
Nextracker said in a filing that it is now planning to offer 23.26M Class A common shares priced between $20 and $23 per share, which would raise around $500M if priced at the midpoint. Underwriters would be granted a 30-day option to buy up to 3.5M additional shares to cover any over-allotments.
The solar tech company plans to use all proceeds from the deal to buy an equal amount of common units from a subsidiary of Flex at the IPO price. It does not plan to retain any net proceeds from the IPO offering.
Flex will retain a controlling stake in Nextracker following the IPO. TPG (TPG) will also remain a major investor, Nextracker said in the filing.
The deal appears to have been dramatically upsized from one proposed earlier this month that indicated the company would seek to raise $100M.
Bookrunners for the deal include JP Morgan, BofA Securities, Citigroup, HSBC, Barclays, BNP Paribas, Truist Securities, Mizuho, Scotia Bank, KeyBanc Capital Markets, SMBC Nikko, BTIG, UniCredit, Roth Capital Partners and Craig-Hallum.
Based in Fremont, Calif., Nextracker’s technology optimizes solar power plant performance by enabling solar panels to track the sun across the sky. The company is profitable, reporting a net income of $51M on revenue of $1.5B for the fiscal year ended March 31, 2022.
For more on Flex and Nextracker, check out Keith Williams’ “Flex Ltd.: Behind the Scenes Renewables Manufacturer” or Donovan Jones’s “Solar Tracking Firm Nextracker Aims for US IPO.”
