Israeli geothermal energy company Ormat Technologies Inc. (NYSE: ORA; TASE: ORA) is raising $300 million, which will be used for general corporate purposes, including working capital and capital expenditures, and for potential acquisitions, including complementary businesses, technologies or assets.
The company has priced 3.6 million shares, with Goldman Sachs acting as sole book running manager for the offering. Goldman Sachs will have a 30-day option of purchasing 540,000 additional shares, so the offering could grow to $345 million.
Ormat's share price closed at $89.50 on Tuesday and it can be assumed that t5he latest offering is at a certain discount. The new shares will represent 6%-6.8% of the share equity of the company, after the offering, depending on whether the options are exercised. After the announcement about the offering the share price fell to $83.50, which still reflects a 7% rise over the past year. The company's market cap is $5 billion.
Ormat, managed by CEO Doron Blachar operates in two sectors of activity in geothermal energy: in the electricity sector it builds power plants and operates them under its own ownership, and in the products sector it builds power plants for others. At the same time, the company also operates in the field of energy storage. In 2022, the electricity sector accounted for 86% of the company's revenue including 70.6% of sales in the US.
Published by Globes, Israel business news - en.globes.co.il - on March 15, 2023.
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