US solar power equipment maker Array Technologies ARRY.O sold shares in its initial public offering (IPO) on Wednesday at USD 22 apiece, above its target range, raising USD 1.05 billion. The offering of 47.5 million shares values Array, which is backed by US private equity firm Oaktree Capital, at USD 2.8 billion. It had aimed to sell 45 million shares at USD 19 to USD 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 percent 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 USD 76.1 million on revenue of USD 552.6 million in the first six months of 2020. In 2019 it earned USD 39.7 million on USD 647.9 million of revenue. The company ended June with USD 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.

First Published:Oct 15, 2020 8:03 AM IST