Houston solar energy company sets terms for IPO

Sunnova Energy International, a residential solar energy provider, has set terms for its Initial Public Offering (IPO). The company has its head office in the Greenway Plaza area of Houston.

The company filed confidentially for an IPO back in April. Its first public filing was on 27 June.

The company is offering 20% of its shares (17.6 million) with an expected price of between $16 and $18 per share. At the midpoint, that would raise $300 million, or $277 million after expenses.

$57 million of the proceeds will be used to repay convertible loan notes due March 2021 that have an interest rate of 9.5%. The rest of the money will be for general corporate purposes, primarily funding the growth of the company.

At $17 a share, the company would have a market capitalization of $1.5 billion. About a third of the 186 Houston-area public companies have a market cap higher than this. You can see the complete list on my website here.

The company is expected to price during the week of July 22, 2019

Sunnova S-1/A filing


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