SolarEdge files for $125m Nasdaq IPO

Guy Sella
Guy Sella

The solar energy company will make the offering at a company value of around $500 million.

SolarEdge yesterday filed a first draft prospectus with the US Securities and Exchange Commission (SEC) to raise up to $125 million. The company value for the IPO was not stated, but at this value, it can be estimated that the company is aiming at a hefty $500 million value. Following the IPO, the company share will be traded on Nasdaq under the ticker symbol SEDG.

The Goldman Sachs and Deutsche Bank investment houses will lead the offering, which will include no offer for sale. Secondary underwriters will include Canaccord Genuity, Needham & Co., and Roth Capital Partners.

SolarEdge develops and manufactures a solar energy optimization and monitoring system. It was selected by "Globes" as one of the most promising start-up companies in 2010. The system makes it possible to increase utilization of energy on solar collectors through optimization of each collector's functioning, while providing real-time data on their production.

The system became commercial in 2010, and has been installed in 73 countries to date. The company was founded in 2006 by five veterans of the IDF 8200 Intelligence Corps: CEO and chairman Guy Sella, VP marketing and product strategy Lior Handelsman, VP R&D Yoav Galin, VP core technologies Meir Adest, and chief software architect Amir Fishelov.

The company was incorporated in Delaware, US, not in Israel. The list of company shareholders indicates that Sella, the only founder who still holds shares in the company, has a 2% stake, including options. The three largest shareholders are venture capital funds Opus Capital Ventures, Genesis Partners, and Walden International, each with a 14.6% stake. As can be seen from its financial results, SolarEdge is holding its IPO just before making a profit for the first time.

The company's fiscal year ends in June, and the company finished the second half of 2014 (the first half of its fiscal 2015) with a $5.9 million net profit. A quarterly breakdown of the company's results shows that its revenue totaled $67 million in the first fiscal 2015 quarter, reflecting 119% annualized growth, and $73 million in the second fiscal 2015 quarter (166% annualized growth). The company earned million net profits of $2.5 million in the first quarter and $3.4 million in the second quarter.

Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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