Ormat Technologies Facility (Company pic)
Ormat Technologies, Inc., an Israeli geothermal energy company providing alternative energy solutions, has priced its previously announced underwritten public offering of 3,600,000 shares of its common stock. The company, currently traded on the NYSE, expects to close the sale on Thursday, March 16, 2023.
The price of the shares will be determined by the value set by the markets for Ormat’s shares, which closed at $89.50 on Tuesday. The firm said the issuance will be “subject to the satisfaction of customary closing conditions,” so if the markets take a dip before that it can delay the sale.
But the very fact that Ormat Technologies is making the offering now is a sign that the company expects the stock price will remain at its current value.
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Also, Goldman Sachs, which is serving as the underwriter, has been given a 30-day option to purchase up to 540,000 additional shares of its common stock, so the sale could bring in up to $350 million, more if the stock goes up before the sale date.
Ormat said 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.
The sale of stock is coming after Ormat Technologies’ dropped in value when last November Japan’s ORIX Corporation, which owned about 22% of Ormat’s stock, dumped about 3.5 million shares in Ormat in an underwritten secondary offering.
But that was then. Today people are painting a rosy picture for the markets in 2023. And alternative forms of energy are popular now, which is Ormat’s field of expertise. As the company explains, it basically captures and harnesses natural heat created by nature.
Founded in 1965, Ormat Technologies is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with the objective of becoming a leading global provider of renewable energy. The Company owns, operates, designs manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity.
The Ormat Recovered Energy Generation (REG) unit is based on Organic Rankin Cycle technology to take waste heat from industrial processes and convert it to power that can be consumed on-site or sold to the grid.
