SolarEdge goes public, begins trading as SEDG

Israel’s SolarEdge – a specialist in power optimizer technology for solar modules – has today begun trading on the NASDAQ as SEDG, having first filing for a $125 million initial public offering (IPO) in February.

The company announced the pricing of its IPO of 7 million shares of common stock at $18 per share, to be sold by SolarEdge on the NASDAQ.

Underwriters have been granted a 30-day option to purchase up to 1,050,000 additional shares, and trading is expected to begin today on the NASDAG Global Select Market.

SolarEdge has confirmed that Deutsche Bank Securities and Goldman, Sachs & Co. are to act as joint book-running managers for the flotation, with Roth Capital Partners, Needham & Company and Canaccord Genuity Inc. acting as co-managers.

When SolarEdge’s IPO was first announced in February, analysts working within the PV industry suggested that the timing was indicative of a company confident in the continued growth of the module-level power electronics (MLPE) sector.

Having accrued global shipments of 601 MW in a relatively short space of time, GTM Research director of solar research MJ Shiao told pv magazine that, by going public, SolarEdge could gain a greater market share in the U.S. and Europe.

"SolarEdge is leveraging the three-phase string inverter architecture, and is able to offset the power optimizer premium through internal savings via its fixed-voltage inverter as well as with electrical balance of systems savings via string stretching," Shiao said.

The U.S. market is preparing to embrace three-phase string inverter architecture at a commercial level, and SolarEdge going public enables the company to respond to increased demand.

At the residential scale, it is believed that SolarEdge’s chief client is SolarCity, which is thought to account for a large proportion of SolarEdge’s balance books.