Solar tech company Nextracker expected to price at upper end of range in good sign for IPO market

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Solar tech company Nextracker expected to price at upper end of range in good sign for IPO market

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Solar technology company Nextracker is expected to price its IPO at the high end of its stated range of $20 to $23 per share, people with knowledge of the process told CNBC.

The order book for Fremont, Calif.-based Nextracker is “well drawn,” meaning demand will allow the company to meet or even exceed pricing expectations, according to the sources, who declined to comment the process of being identified.

The development bodes well for the ailing IPO market. IPO proceeds fell 94% last year after the Federal Reserve launched its most aggressive rate-hiking campaign in decades. Notably, stocks of unprofitable tech companies, many of which are still afloat after going public in 2020 and 2021, have pissed investors off.

Nextracker’s IPO, which aimed to raise up to $535 million, is arguably its first significant listing this year, as it’s expected to be the largest U.S. listing since the autonomous-driving company Mobileye raised $990 million in October.

According to one of the people, Nextracker is scheduled to start trading on the Nasdaq exchange on Thursday morning.

This story evolves. Please check back for updates.