Ormat Announces Pricing of Public Offering of Common Stock on Behalf of Stockholder Orix Corporation

Rhea-AI Summary

Ormat Technologies (NYSE: ORA) announced the pricing of a secondary offering of 3,700,000 shares of common stock on behalf of ORIX at $76.20 per share. The offering is expected to close on December 13, 2024. Goldman Sachs & Co. , acting as the sole book-running manager and underwriter, has a 30-day option to purchase up to an additional 555,000 shares. Ormat will not receive any proceeds from this sale.

Ormat is a leading geothermal company with over five decades of experience, operating a 1,500MW generating portfolio consisting of 1,230MW geothermal and solar generation across multiple countries and a 270MW energy storage portfolio in the U.S.

Positive

• Maintains strong global presence with 1,500MW total generating portfolio
• Diversified operations across geothermal, solar, and energy storage sectors
• Vertically integrated business model with manufacturing and operations capabilities

Negative

• No proceeds from the secondary offering benefit the company
• Potential stock price pressure from large secondary offering of 3.7M shares
• Additional dilution risk if underwriter exercises 555,000 share option

Insights

Financial Analyst

This secondary offering of 3.7 million shares by ORIX at $76.20 per share represents a significant market transaction worth approximately $282 million. While Ormat won't receive proceeds from this sale, the pricing slightly below current market levels and the size of the offering could create temporary selling pressure. The involvement of Goldman Sachs as sole underwriter adds credibility to the transaction. The additional 555,000 share option, if exercised, would bring the total offering to about $324 million. This sale indicates ORIX's strategic decision to reduce its stake in Ormat, which could impact trading dynamics and institutional ownership structure. The transaction's pricing and timing suggest measured confidence in Ormat's market position despite near-term volatility in renewable energy stocks.

Market Research Analyst

The secondary offering's timing and structure provide insights into institutional sentiment toward renewable energy stocks. ORIX's decision to divest comes amid broader market recalibration of clean energy valuations. With Ormat's $4.8 billion market cap, this offering represents approximately 7.7% of the company's shares. The transaction could increase the stock's float and liquidity, potentially attracting new institutional investors. The company's vertical integration in geothermal energy and expansion into energy storage remain attractive features, though the offering might temporarily pressure the stock as the market absorbs the additional shares. The pricing mechanism suggests careful consideration to minimize market impact while ensuring successful placement.

RENO, Nev., Dec. 11, 2024 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) (“Ormat” or the “Company”), a leading geothermal and renewable energy technology company, announced today the pricing of an underwritten secondary offering of 3,700,000 shares of its common stock on behalf of ORIX Corporation. The offering is expected to close on December 13, 2024, subject to customary closing conditions. Ormat is not offering any of its common stock in the offering for its own account and will not receive any proceeds from the sale of the shares being offered by the selling stockholder.

Goldman Sachs & Co. LLC is acting as the sole book-running manager and underwriter for the offering. The shares of common stock are being sold to the public at an initial price of $76.20 per share. Goldman Sachs & Co. LLC will have a 30-day option to purchase up to an additional 555,000 shares of Ormat’s common stock from ORIX Corporation.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

The offering is being made pursuant to an automatically effective shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission on December 11, 2024. The offering may be made only by means of a base prospectus and a related prospectus supplement, copies of which may be obtained by contacting c/o Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at (866) 471-2526, or email at prospectus-ny@ny.email.gs.com.

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. 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 Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,500MW with a 1,230MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 270MW energy storage portfolio that is located in the U.S.

FORWARD-LOOKING STATEMENTS

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements concerning the completion of the offering. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 23, 2024, and in Ormat’s subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K that are filed from time to time with the SEC.

These forward-looking statements are made only as of the date hereof, and, except as legally required, Ormat undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Ormat Technologies Contact: Smadar Lavi VP Head of IR and ESG Planning & Reporting 775-356-9029 (ext. 65726) slavi@ormat.com

Investor Relations Agency Contact: Joseph Caminiti or Josh Carroll Alpha IR Group 312-445-2870 ORA@alpha-ir.com

FAQ

How many shares are being offered in Ormat's (ORA) December 2024 secondary offering?

ORIX is offering 3,700,000 shares of Ormat common stock, with Goldman Sachs having an option to purchase an additional 555,000 shares within 30 days.

What is the price per share for Ormat's (ORA) December 2024 secondary offering?

The shares are being offered at an initial price of $76.20 per share.

Will Ormat Technologies (ORA) receive any proceeds from the December 2024 offering?

No, Ormat will not receive any proceeds from the sale as this is a secondary offering by selling stockholder ORIX

What is Ormat Technologies' (ORA) current total generating portfolio capacity?

Ormat's current total generating portfolio is 1,500MW, comprising 1,230MW of geothermal and solar generation globally and 270MW of energy storage in the U.S.