Xinyi Luo – Solar power equipment maker Nextracker Inc. rose 27% in its trading debut after raising $638 million in the biggest US initial public offering of the year.
The share sale, ending a four-month chill for US listings, comes as the pipeline of pending IPOs continues to fill. It also shows that companies falling under the heading of ESG —environmental, social and governance — can command investor attention.
“There’s a huge appetite from equity investors for ESG businesses, renewable energies like this is right in their wheelhouse,” Paul Lundstrom, chief financial officer of Nextracker’s parent company, said in an interview. “That sector is hot and everybody wants to own a piece of what is ultimately going to be the future in energy.”
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