Ormat Announces Public Offering of Common Stock on Behalf of Stockholder ORIX Corporation

Rhea-AI Summary

Ormat Technologies (NYSE: ORA), a leading geothermal and renewable energy technology company, announced a secondary offering of 3,700,000 shares of common stock on behalf of ORIX . Goldman Sachs & Co. , serving as the sole book-running manager and underwriter, will have a 30-day option to purchase up to an additional 555,000 shares from ORIX. Ormat will not receive any proceeds from this offering as it is not selling any shares. The offering is being made through an automatically effective shelf registration statement on Form S-3 filed with the SEC on December 11, 2024.

Positive

• None.

Negative

• Large shareholder (ORIX ) reducing position through 3.7M share sale
• Additional 555,000 shares could be sold through underwriter's option
• Potential downward pressure on stock price due to large share sale

Insights

Financial Analyst

ORIX 's decision to sell 3.7 million shares of Ormat represents a significant ownership reduction, likely impacting the stock's trading dynamics. With an additional 555,000 shares potentially being sold through the overallotment option, this secondary offering could create temporary downward pressure on ORA's stock price due to increased supply. The offering's timing and size suggest ORIX is strategically reducing its position, though Ormat's fundamentals remain unchanged as the company won't receive any proceeds. Goldman Sachs' involvement as sole book-runner indicates a well-structured exit strategy, potentially minimizing market disruption through their established distribution channels.

Market Research Analyst

This secondary offering could reshape Ormat's shareholder structure and float characteristics. With a market cap of 4.8 billion, the offering of 3.7 million shares represents a material portion of ownership changing hands. The increased public float could enhance trading liquidity and potentially attract new institutional investors. However, the market might interpret ORIX's exit as a bearish signal, particularly given the size of the stake being divested. The automatic effectiveness of the shelf registration suggests careful preparation and timing of this transaction to optimize market conditions.

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 commencement of an underwritten secondary offering of an aggregate of 3,700,000 shares of its common stock on behalf of ORIX Corporation. 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. 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 is ORIX selling in Ormat Technologies (ORA) secondary offering?

ORIX is selling 3,700,000 shares of Ormat Technologies common stock, with Goldman Sachs having an option to purchase an additional 555,000 shares.

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

No, Ormat Technologies will not receive any proceeds from this offering as the shares are being sold by ORIX , not by the company.

Who is the underwriter for Ormat Technologies (ORA) December 2024 secondary offering?

Goldman Sachs & Co. is acting as the sole book-running manager and underwriter for the offering.

What is the size of the overallotment option in Ormat's (ORA) December 2024 secondary offering?

Goldman Sachs has a 30-day option to purchase up to an additional 555,000 shares from ORIX

When was the shelf registration statement filed for Ormat's (ORA) secondary offering?

The shelf registration statement on Form S-3 was filed with the SEC on December 11, 2024.