Ormat raising $307m in equity offering

Doron Blachar / Photo: Nir Salkman

The price in the offering is $74 per share, just under Ormat Technologies closing price in New York yesterday.

Geothermal energy company Ormat Technologies, Inc. (NYSE: ORA; TASE: ORA) is raising $307 million in an equity offering. The price in the offering of 4,150,000 shares is of $74.00 per share. The amount raised could rise by another $46 million if the underwriters exercise their option to buy more shares within 30 days. J.P. Morgan Securities LLC and BofA Securities are acting as joint book-running managers for the offering. UBS Securities LLC is also acting as a joint book-running manager. Cowen, HSBC Securities (USA) Inc., Oppenheimer & Co. Inc. and Roth Capital Partners are acting as co-managers. The offering is expected to close on November 23, subject to market and other conditions.

The offering price is 10% below the closing price of Ormat Technologies stock the previous day, and yesterday (Wednesday) the share price in New York fell by 8.8%. Ormat Technologies current share price is $75, higher than the price in the offering. Before the pricing was announced, Ormat Technologies' share price had risen 50% since September. The company's market cap is $3.8 billion.

Ormat says that it intends to use the net proceeds from the offering for general corporate purposes, including working capital and capital expenditures, and for potential acquisitions, including complementary businesses, technologies or assets.

Ormat Technologies, headed by Doron Blachar, builds geothermal power plants, and in some cases operates them as well. In recent years, the company has also entered the growing field of energy storage. Six months ago, Ormat Technologies raised NIS 1 billion ($290 million) in a bond offering on the Tel Aviv Stock Exchange, and announced the purchase of an energy storage installation in California for $43.9 million.

Ormat is expected to end 2020 with revenue of $707-717 million and EBITDA of $417-425 million.

Published by Globes, Israel business news - en.globes.co.il - on November 19, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Doron Blachar / Photo: Nir Salkman
Doron Blachar / Photo: Nir Salkman
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