Another exchange in PPVX: Soltec Power replaces REC Silicon

With effect from October 30, Spanish tracking systems provider Soltec Power Holdings, S.A. has been included in the PHOTON Photovoltaic Stock Index PPVX. This came just one week after US-based Array Technologies Inc. was the first PPVX-entry from this sector. Because the index is limited to the 30 PV companies with the world’s highest market capitalization, Norwegian silicon manufacturer REC Silicon, currently the stock with the lowest market capitalization (around $329), has to give up its place. REC Silicon had been included together with Array Technologies just one week before (replacing 7C Solarparken and Tainergy Tech)
Soltec manufactures single-axis tracking systems for utility-scale solar power plants and is ranked by market research companies among the three to five most important suppliers worldwide in this segment. However, the two global market leaders NexTracker and Array Technologies, with a combined market share of around 40 to 45 percent, account for about as much as the following eight to ten competitors. Soltec’s services also include, as is usual in this industry, project development, financing, construction and operational management of solar power plants. According to the company, a cumulative 7.1 GW of PV capacity has been installed on Soltec systems since its foundation in 2004, 42 percent of which is in Latin America, 31 percent in North America and 25 percent in Europe and the Middle East. The company employs around 1,300 people in 16 countries. In the first half of 2020, sales decreased by 5 percent to €115.7 million ($135.4 million), while the consolidated loss increased from €5.4 million to €9.3 million. In mid-2020, the order backlog was around €190 million ($222.5 million) for around 1.8 GW.
The IPO on October 28 took place just under two weeks after publication of the prospectus on October 15. The initial price was €4.82, at the upper end of the €3.66 to EUR 4.82 bookbuilding range. At the end of the first day of trading, the price was €5.30. The weekly closing price on October 30, when the stock was included in the PPVX, was €5.38. The free float amounts to 38 percent, the market value is almost €492 million ($576 million).
The PPVX fell last week by 3.0 percent to 2,869 points. Its reference value NYSE Arca Oil lost 6.7 percent. With an increase of 95.0 percent since the beginning of the year, the PPVX is 153.1 percentage points ahead of the oil stock index (minus 58.1 percent). In a long-term comparison since the beginning of 2003, the PPVX (plus 919.7 percent) has a lead of 907.9 percentage points over the oil stocks (plus 11.8 percent). The cumulative market value of all PPVX companies is currently around €88.2 billion ($103.3 billion).
The top three stocks since the beginning of the year are Sunrun with a price gain of 276.7 percent, Enphase (275.4 percent) and Daqo New Energy (256.7 percent). The largest price losses compared to January are recorded by BCPG (29.0 percent), Maxeon (21.6 percent since admission to the PPVX on September 4) and Meyer Burger (14.4 percent). Xinyi Solar (11.2 percent), West Holdings (9.9 percent) and Solaria Energía (5.7 percent) recorded the highest price gains of the week, while the highest price losses were posted by Maxeon (14.4 percent), Array Technologies (12.3 percent) and Sunnova (10.4 percent).

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