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    INVESTMENT BANKING | CLIENT STORY

    Financing the future of solar energy with Nextracker’s IPO and first Follow-on Offering

    31 Aug 2023

    Nextracker, a leading global provider of solar tracker and software solutions partnered with Barclays teams to successfully raise $734m through its IPO in February and $662m through its first Follow-on Offering in July 2023. Going public will allow the company to continue to innovate and scale their business, ultimately helping to broaden the reach and efficiency of solar energy.

    Financing the future of solar energy with Nextracker’s IPO and first Follow-on Offering
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    Solar trackers allow solar panels to follow the sun’s movement across the sky to optimise power plant performance. While this may sound simple, solar tracker performance can often be affected by uneven terrain, extreme weather conditions and other factors.   

    Nextracker’s combined hardware/software solution is uniquely designed to address those issues, resulting in increased energy production and a 7% improvement in Levelized Cost of Energy (LCOE) over the lifetime of solar power plants. 1

    Its solar tracker design also helps accelerate project construction schedules during installation, driving the growth of solar energy projects globally.

    To continue to drive momentum, Nextracker looked to take their company public, so it sought guidance from Barclays to support its continued growth and innovation. 

    Nextracker’s impact on solar energy supply

    Co-founded in 2013 by Dan Shugar, Nextracker’s mission is to increase clean energy supply by making solar energy more widely accessible.

    For the last seven consecutive years, the company has led the solar tracking industry based on gigawatts (GW) shipped globally.1 This is critical to the clean energy transition, because, for every GW solar tracker deployed and every GW hour of clean solar energy produced, the climate and environmental benefits are multiplied.

    75 GW of tracker based solar energy can offer these environmental benefits

    Source: US Environmental Protection Agency (EPA) calculator.

    Investors see value in hardware and software

    Barclays has held a longstanding relationship with Dan Shugar, whose passion for the environment and sustainability has led him to become a clean energy trailblazer.

    This relationship, as well as Barclays’ prior institutional banking relationship with Flex (which acquired Nextracker in 2015), meant Barclays was well positioned to help Nextracker on the next step of its growth journey.

    As Joint Active Bookrunner on the IPO and first Follow-on Offering, Barclays’ Equity Capital Markets team partnered closely with colleagues in our Sustainable & Impact Investment Banking team, and Nextracker’s management team to drive the structure, marketing and execution of both deals. It also helped align the company’s equity story around how its single tracker model can reduce costs and maximize clean energy production.

    Since investors in technology are typically drawn to software, one of the key challenges of the meetings was outlining the innovation of the hardware that supports Nextracker’s products.

    Nextracker’s leading combination of hardware and software, as well as meaningful sector tailwinds from the Inflation Reduction Act (IRA) and decarbonisation initiatives, drove early momentum and outsized demand for the IPO and successful public market performance thereafter.

    As a result of strong interest, the company upsized their planned IPO offering from 23.3m to 26.6m shares. During a five-day roadshow, Nextracker met with more than 65 investors. The orderbook was multiple times oversubscribed, drawing significant interest from blue-chip mutual funds as well as energy transition specialists. On the back of strong trading performance following the IPO and an attractive market window, Nextracker launched a successful first Follow-on Offering four months later. The orderbook was multiple times oversubscribed, with high quality demand from both new and existing holders.

    Going public will support Nextracker’s growth and expansion strategy. It will also help further drive solar development, sector performance, and make solar energy more accessible to consumers.

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    1Nextracker

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    Disclaimer

    Any transactions referred to in this document labelled as “green”, “social”, “sustainable” or equivalent were labelled as such at the point of issuance/origination (or equivalent) of the relevant transaction. Please note such labelling is distinct from the reporting eligibility criteria of Barclays’ own sustainable finance /transition finance frameworks. Such transactions are referenced here merely as examples of the types of transactions in which we have been able to assist our clients. By including them in this document we are not making any current claims about their sustainability related characteristics.

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