Shoals Technologies Kicks Off Roadshow for $1 Billion IPO

Shoals Technologies, a producer of key systems used in solar-energy projects, launched a series of investor presentations tied to a potential IPO.
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Shoals Technologies Group said Tuesday it launched a roadshow -- a series of presentations to potential investors -- for its initial public offering of 50 million common shares at $19 to $21 each.

The Portland, Tenn., company makes electrical balance of system, or EBOS, solutions for solar energy projects.

Shoals said in its prospectus that "EBOS components are mission-critical products that have a high consequence of failure, including lost revenue, equipment damage, fire damage, and even serious injury or death.

"As a result, we believe customers prioritize reliability and safety over price when selecting EBOS solutions," the company said. 

"We believe that approximately 54% of the solar energy generation capacity installed in the U.S. during the 12 [months] ended Sept. 30, 2020, used at least one of our EBOS products."

Shoals said it intended to use net proceeds from the offering to purchase equity interests from its operating subsidiary and certain current stockholders and for general purposes to further build the business.

"We believe the growing percentage of solar energy projects that include battery energy storage coupled with the additional EBOS required for these projects will cause the addressable market for our EBOS products to grow faster than the overall market for solar," the company said.

Shoals, which was founded in 1996, will be listed on the Nasdaq under the ticker symbol SHLS.

The underwriters will be granted a 30-day option to buy as many as an additional 7.5 million shares.

Goldman Sachs and JPMorgan are joint bookrunning managers and representatives of the underwriters for the offering. 

Guggenheim Securities and UBS Investment Bank are also joint bookrunning managers. Morgan Stanley, Barclays and Credit Suisse are bookrunners. Cowen and Oppenheimer are co-managers.

The global market for solar PV balance of system solutions is expected to grow by $42.2 billion from 2020 to 2024, according to a report by the research firm Technavio.