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Israel’s renewable firm valued at over $2bn in New York debut

REUTERS/Regis Duvignau
Enlight Renewable Energy has a $1.95 billion market cap on the Tel Aviv Stock Exchange

Shares of Enlight Renewable Energy slipped in their US market debut on Friday, giving the Israel-based renewable energy developer a market capitalisation of $2.07 billion.

The stock opened at $17.90, slightly below its initial public offering price of $18 per share.

It raised $252 million by offering 14 million shares on Thursday, lower than its original plan of raising up to $293 million.

The company has a $1.95 billion market cap on the Tel Aviv Stock Exchange.

The US IPO market has shown some signs of a revival this year as investors’ bet on the Federal Reserve easing its policy tightening has sent Wall Street’s main indexes higher.

“The IPO market is trying to make a comeback. Market conditions have been a lot better than many were expecting and the water seems ok for now,” said Edward Moya, senior market analyst at Oanda in New York.

“Some deals are getting done now but this constructive environment might not last much longer if we see more chaos in bond markets. Recession risks are growing and that could complicate the current environment,” he added.

The year could also see several clean energy firms go public. Solar technology firm Nextracker Inc debuted on Thursday, while Desri Inc and Rev Renewables Inc are in the pipeline.

The impact of the renewable revolution has been felt in many global markets, but European nations and the United States have been at the forefront, later joined by China, according to independent research firm Frost & Sullivan.

In the nine months ended September 30, Enlight doubled its profit to $27.2 million from a year ago and boosted revenue by 95 percent to $131.3 million.

JP Morgan, BofA Securities and Barclays are the lead underwriters for Enlight’s IPO.