In a share issue, Ormat Technologies is raising $307 million in fresh funding
Germencik 2 (Effe 3) Geothermal Power Plant, Turkey (source: Ormat Technologies)
Alexander Richter
19 Nov 2020
Ormat Technologies seeks funding of up to $350 million in an equity offering with net proceeds to support working capital expenditures and potential acquisitions.
Earlier this week, Ormat Technologies, Inc. (NYSE: ORA) announced the launch of an underwritten public offering of 4,150,000 shares of its common stock. Ormat expects to grant the underwriters a 30-day option to purchase up to an additional 622,500 shares of its common stock.
In another release yesterday, Ormat reported that it has priced its underwritten public offering of 4,150,000 shares of its common stock at a price of $74.00 per share. The offering is expected to close on November 23, 2020, subject to market and other conditions. With that the company is seeking to raise $307 million in this equity offering. The amount raised could rise by another $46 million if the underwriters exercise their option to buy more shares within 30 days, according to news from Israel.
Ormat 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.
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 for the offering. Cowen, HSBC Securities (USA) Inc., Oppenheimer & Co. Inc. and Roth Capital Partners are acting as co-managers for the offering. Ormat has granted the underwriters a 30-day option to purchase up to an additional 622,500 shares of its common stock.
