Solar power equipment maker Array raises $1 billion in IPO

US solar power equipment maker Array Technologies sold shares in its initial public offering (IPO) on Wednesday at $22 apiece, above its target range, raising $1.05 billion.

The offering of 47.5 million shares values Array, which is backed by US private equity firm Oaktree Capital, at $2.8 billion. It had aimed to sell 45 million shares at $19 to $21 per share.

Array, founded in 1989, went public as global energy consumption is shifting away from fossil fuels to sustainable sources such as solar and wind. The Albuquerque, New Mexico-based company produces steel supports, electric motors and controllers, gear boxes and other solar energy equipment.

Oaktree Capital, which acquired an undisclosed stake in Array in 2016, and Array founder Ron Corio will own 73 per cent of the company's total outstanding shares after the IPO, according to a filing with the US Securities and Exchange Commission.

Array had net income of $76.1 million on revenue of $552.6 million in the first six months of 2020. In 2019 it earned $39.7 million on $647.9 million of revenue.

The company ended June with $749.2 million of debt.

Shares in Array will begin trading on the Nasdaq on Thursday under the symbol "ARRY".

Goldman Sachs, JP Morgan, Guggenheim Securities and Morgan Stanley are among the lead underwriters.