SolarEdge Technologies Files For $125 Million IPO — Israel-Based Provider Of Optimizers, Inverters, & Monitoring Solutions Going Big
The Israel-based solar electronics startup SolarEdge Technologies recently filed with the SEC to raise up to $125 million in an initial public offering (IPO) of stocks. The company is planning to list on the NASDAQ exchange under the symbol “SEDG.”
The company — which primarily provides solar panel optimizers, inverters, and monitoring solutions — has been expected to do so for some time now, and apparently actually filed confidentially back on November 5, 2014.
The joint book-runners on the deal are Goldman Sachs and Deutsche Bank, according to Renaissance Capital.
Since its founding back in 2006, SolarEdge has already received more than $40 million in capital via a variety of investors, including: Vertex Venture Capital, Norwest Venture Partners, General Electric’s GE Energy Financial Services, Walden International, Lightspeed Venture Partners, Opus Capital Venture Partners, Genesis Partners, ORR Partners, and JP Asia Capital Partners.
Worth noting upfront here is that the company is well in the black — and saw a profit of $5.9 million during the last 6 months of 2014 — part of which is no doubt due to the company’s successful relationship with one of its larger customers, SolarCity.
Here are a number of facts regarding the company that are worth nothing (coming to us via Greentech Media):
- SolarEdge has shipped 601 megawatts (MW) of inverters.
- “The US residential market has really carried SolarEdge full steam ahead, accounting for 72% of its revenues.”
- In the last six months of 2014, a single customer, identified as “Customer B,” accounted for 32.3% of the company’s revenues. Shiao figures that’s in the neighborhood of 125 MW and suggests that the only US residential solar installer with that kind of heft is, of course, SolarCity. That’s a great customer for SolarEdge — as well as a lot of exposure to a single player.
- SolarEdge shipped 1.3 million power optimizers in fiscal 2014.
- Revenue grew from $58.1 million in the first six months of fiscal 2014 to $140.3 million in the first six months of fiscal 2015.
- Gross margin increased from 5.6% in fiscal 2013 to 16.5% in fiscal 2014. GM is 21.3% in the first six months of SolarEdge’s fiscal 2015.
- Although the company had net income for the first six months of fiscal 2015 of $5.9 million, the VC-funded startup has an accumulated deficit of $135.2 million and incurred net losses of $28.2 million in fiscal 2013 and $21.4 million in fiscal 2014.
With SolarEdge possessing a market share (in the US residential market) of ~26% in Q3 2014, the company does seem to have a lot going for it. It’ll have to compete with the other major player in the the US — Enphase — though, for continued growth. There are also several recent startups looking to grab a piece of the nascent market.
Probably not at all a bad bet, for those looking to gamble some.
Image Credit: SolarEdge
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Any idea when they’re planning to offer the IPO?
It will be at least a couple months off, this was just the filing for SEC approval. It does say on it that they want to do it in ’15 though.
I will hypothetically invest $1,000 1 hour after the opening bell on the IPO day at the market price. I will then sell ten business days later. Transaction fee is $7.00. We’ll see how much I gain (lose).
I only made $120.63. Bought 47.28 shares at $21.00 on March 26th for $1,000 (including $7 transaction fee), sold on April 6th at $23.85/share for $1,120.63 (including $7 fee). I should have stayed in longer, peaked in June. If sold at $39/share would have made $836.92.
Stock is at $18.58 today…