Geothermal Energy Company Ormat Raises about 300 million dollars that will be used for general business purposes, including working capital, capital investments and additional purchases of assets or technologies.
The company announced the issuance of 3.6 million shares, which are all being sold to the underwriter of the issue, Goldman Sachs Bank. The bank is also given an option to purchase an additional 540,000 shares at the issue price within 30 days, so the scope of the fundraising may increase by approximately $45 million. stock Ormat closed on Tuesday at a price of about $89.5 on the New York Stock Exchange, but it can be assumed that the offering was made at a certain discount. The new shares will constitute 6%-6.8% of the company’s share capital after the issuance (depending on the exercise of the option to purchase more shares).
After the announcement of the offering, the stock fell in late trading to a price of $83.5, a price that reflects an increase of about 7% in the stock price over the past year. The market value of the company, which is also traded at the same time on the Tel Aviv Stock Exchange, reaches about 5 billion dollars.
Ormat, managed by Doron Belsher, operates in two sectors of activity in the field of 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, it also operates in the field of energy storage. In 2022, the electricity sector accounted for 86% of the company’s revenues, and of this, approximately 70.6% of sales were in the US.
Ormat ended 2022 with revenues of $734 million, a growth of 10.7% compared to 2021. Net profit attributable to shareholders increased by 6% to $65.8 million and adjusted EBITDA (earnings excluding interest, tax, depreciation and amortization) amounted to About 436 million dollars, compared to 401 million dollars in 2021. Ormat expects to register in 2023 an increase of 10%-17% in adjusted EBITDA to 480-510 million dollars.
The company’s major shareholders are foreign and Israeli institutional entities such as Blackrock, Vanguard and Migdal, as well as the Japanese corporation Orix, which currently owns 11.9% of Ormat’s shares.