As we know by the wildly popular Invesco Solar ETF (TAN), the solar subsector is slamming. Now, a company called FTC Solar is hitting the market with its own IPO.
Founded in 2017, FTC Solar is a startup that's shaking things up—and the IPO is evidence.
FTC Solar is at the top of IPO news this week for impact investors.
With the offering scheduled mid-week, FTC Solar's upcoming IPO is on many investors' minds in the impact space. The company is focusing on solar tracking systems. FTC's flagship product Voyager helps to lower costs and increase profitability for solar panel farms.
CEO Tony Etnyre and CFO Patrick Cook are both former executives coming from SunEdison—a formerly public company that went bankrupt and was delisted from the NYSE in 2016. For Etnyre, Cook, and others, the FTC Solar IPO is a second chance for market relevancy.
FTC has roots in Austin, India, and Australia, so even though this is a domestic stock, there's still global exposure.
In true startup fashion, FTC Solar has yet to hit profitability
According to the company's S-1 filing with the SEC, they "have a history of losses that may continue in the future, and [...] may not achieve profitability."
Given the growth, FTC Solar has increased its expenses in 2020 YoY. The net loss also grew, but at a much slimmer pace than the revenue growth. This could mean decent earnings for early investors, but it isn't a promise.
Most of FTC's merit lies in contractual agreements. In 2020, the company had $109 million in contracts and awarded orders. From Jan. 1 to April 14 of this year, FTC already scored $227 million in contracts and awarded orders, so the company is clearly upping its game.
Profitability is hard to come by in startups, but a lack of profitability isn't without its risks in the public market.
FTC prices upcoming stock
FTC Solar is selling 18.4 million company shares in the public market. The company priced each share at an offering of $18–$20 apiece. Underwriters have the ability to purchase an additional 2.7 million shares, which could impact the stock's early volatility. FTC could see upwards of $423 million from IPO fundraising alone.
FTC Solar's valuation could hit $1.6 billion.
If all goes according to plan, FTC Solar could see a $1.6 billion valuation after the 2021 IPO. The company already achieved unicorn status given earlier private funding, and this would add to it.
Keep your eyes peeled for the FTCI stock symbol
FTC Solar plans to list on the Nasdaq Global Market under the ticker symbol "FTCI." The shares will start trading for preferred investors first. The IPO shares will likely be available to retail investors by mid-morning.
FTC Solar is going public soon.
FTC set the pricing terms for its IPO on April 17. The company plans to debut on April 28.
How to buy FTC Solar IPO stock when it goes public
If you want to get in on the FTC Solar IPO, make sure you have a brokerage account up and running. Popular options include TD Ameritrade, Ally Invest, Charles Schwab, Robinhood, and SoFi Alternative. From there, search the ticker "FTCI" and trade based on your budget and preferences.
As an ESG-compliant company, investors might soon find FTC Solar in different sustainable investing funds. Keep an eye on ETF holdings after the company officially goes public.