Balance of systems supplier Shoals sets terms for IPO

Facebook
Twitter
LinkedIn
Reddit
Email
The Copper Mountain solar project in Nevada features BOS products from Shoals. Image: Sempra US Gas & Power.

Shoals Technologies Group, an electrical balance of systems (BOS) solutions provider for solar and storage projects, has announced the launch of its Initial Public Offering (IPO).

Tennessee-based Shoals will issue 50 million shares of its Class A common stock, of which 10.5 million are offered by the company and 39.5 million by a parent entity of the firm controlled by funds managed by Oaktree Capital Management. The underwriters will be granted a 30-day option to buy as many as an additional 7.5 million shares.

The IPO price is expected to be priced between US$19 and US$20 per share. Shoals intends to list its common stock on the Nasdaq Global Market under the ticker SHLS.

The company said it will use net proceeds from the offering to purchase equity interests from its operating subsidiary and certain existing stockholders and for “general corporate purposes to support the growth of the business”.

Goldman Sachs and JP Morgan are joint bookrunning managers and representatives of the underwriters for the offering. Guggenheim Securities and UBS Investment Bank are joint bookrunning managers, while Morgan Stanley, Barclays and Credit Suisse are bookrunners.

BOS components that Shoals provides include cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, transition enclosures and splice boxes. Its products are mainly sold to engineering, procurement and construction firms that build solar projects.

In its investment prospectus, Shoals said: “We believe that approximately 54% of the solar energy generation capacity installed in the US during the 12-month period ended September 30 2020 used at least one of our electrical BOS products.”

The company derives most of its revenues from selling ‘system solutions’, which are complete BOS systems that include several products. In 2019, 97% of the company’s revenues were from customers in the US, while 3% was from the rest of the world.

The prospectus also details the company’s estimated financial results for 2020, in which it saw revenues rise 21% year-on-year to between approximately US$174 million to US$176 million. Net income is expected to be up 32%, ranging from US$32 million to US$34.5 million.

15 September 2022
Bifacial PV modules will be the dominant solar PV technology globally within one or two years; in the utility-scale sector, their market share is already above 70%. This webinar will provide a clear view on the successful implementation of bifacial technology, maximizing system performance and minimising LCoE.
4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.

Read Next

August 10, 2022
OMERS Private Equity has acquired a minority stake in the Arizona-headquartered solar operations & maintenance (O&M) provider NovaSource Power Services.
August 10, 2022
US solar tracker manufacturer FTC Solar has cut its net losses compared with last quarter and Q2 2021 but has seen its revenue collapse, blaming a hostile solar environment in the US that has seen project delays and cancellations, which it said it now hoped was coming to an end.
August 9, 2022
The Public Service Commission of the District of Columbia (DCPSC) has approved a 15-year power purchase agreement (PPA) with renewables developer Invenergy for 73MW of solar power to meet a 5% renewables target for district’s default electricity supply.
August 8, 2022
The Inflation Reduction Act (IRA), which includes US$369 billion in energy security and climate change programmes over the next ten years, passed in the US Senate on Sunday, paving the way for its movement to the House of Representatives and subsequent signing by President Joe Biden.
August 8, 2022
Energy technology company AES Corporation is still on track to reach its target of 4.5-5.5GW in long-term renewables and energy storage contracts in 2022, having already signed 1,618MW in the year to date, according the firm’s Q2 financial report.
August 5, 2022
Canadian renewables company Revolve Renewable Power has received approval to build a 250MW solar-and-storage project on land managed by the US Bureau of Land Management (BLM) in Arizona.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
London
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event