4-07-2015 SolarEdge Goes Public, Poised for Growth
Israel-based solar power electronics company SolarEdge has gone public and is now listed on the Nasdaq under the SEDG symbol. Through its initial public offering (IPO), the company managed to raise $126 million. SolarEdge offered seven million shares of stock at $18 a piece. If you want to see the gritty details, check out the S-1 IPO Registration Statement.
The company, founded in 2006, managed to raise about $40 million through venture capital funding, which helped set the stage for its 2015 IPO.
Solar Increasingly Goes Public
SolarEdge’s entry into the stock market places it among the ranks of several solar companies who have decided to go public recently. Vivant Solar and Solar City haven’t been in public holding long. Enphase, SolarEdge’s closest rival, has been public since 2012.
It seems that SolarEdge has started out strong as a public company, which is certainly good news for its investors. If everything continues to go well for it, the company’s IPO could give it a sizable increase in cash.
SolarEdge could use that cash to surpass traditional inverter manufacturers. Many inverter companies have faced a few struggles recently as a result of the weakened European market and global pricing pressure. With SolarEdge strengthened by its IPO, the company is poised to be a serious contender in the battle for a larger market share.
However, established companies like Enphase won’t back down easily. The company just enjoyed a record quarter, so it’s ready to ramp up efforts at growth this quarter.
Positive Market Indicators
The number of solar companies raising money through IPOs is encouraging. It shows that the solar industry is alive and ready for more growth. As SolarEdge adjusts to its new status as a public company, the industry will likely become even more competitive, which is generally good for growth and innovation.