HOUSTON - Solaris Energy Infrastructure, Inc. (NYSE:SEI), a provider of equipment-based solutions for power generation and raw material management in the energy sector, has priced an underwritten public offering of 6.5 million shares at $24.75 each. The company, which has seen its stock surge over 237% year-to-date according to InvestingPro data, currently maintains a market capitalization of approximately $788 million. The transaction, announced today, is expected to yield approximately $156 million in net proceeds and is scheduled to close on December 11, 2024, pending customary closing conditions.
The funds raised from the offering will be contributed to Solaris Energy Infrastructure, LLC in exchange for membership units equivalent to the Class A common stock issued. The subsidiary plans to use the proceeds to finance the expansion of its power generation equipment, including the purchase of new natural gas turbines and associated electrical components to support customer activity. InvestingPro analysis indicates the company operates with a moderate debt level and maintains strong liquidity with a current ratio of 3.61, suggesting adequate financial flexibility for this expansion.
Additionally, Yorktown Energy Partners X, L.P., a selling stockholder, has granted underwriters a 30-day option to buy up to an additional 975,000 shares at the same price. If exercised, this could potentially increase the total capital raised, though Solaris Energy Infrastructure will not receive any proceeds from the sale of these option shares.
Santander (BME:SAN) is leading the underwriting team, with Goldman Sachs & Co. LLC, Piper Sandler, and Wolfe Capital Markets and Advisory as book-running managers. Several other financial institutions are serving as co-managers for the offering.
The sale is being conducted in accordance with a shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (SEC) on November 25, 2024. Relevant documents, including the preliminary prospectus supplement and the final prospectus supplement once available, can be obtained from Santander or by visiting the SEC's website.
This press release does not constitute an offer to sell or a solicitation to buy the securities in any jurisdiction where such an offer or sale would be unlawful. According to InvestingPro analysis, SEI currently trades at elevated multiples across various metrics, with a P/E ratio of 58.2, suggesting premium pricing. Subscribers can access 14 additional ProTips and a comprehensive Pro Research Report covering SEI's detailed financial analysis, growth prospects, and industry positioning.
The information in this article is based on a press release statement from Solaris Energy Infrastructure, Inc.
In other recent news, Solaris Energy Infrastructure announced the commencement of an underwritten public offering of 6.5 million shares of its Class A common stock. The proceeds from this offering are expected to fund the expansion of power generation equipment to meet growing customer demand. In addition, the company has raised its adjusted EBITDA forecast for Q4 2024, now expecting it to be between $36 million and $39 million.
In recent developments, Solaris Energy Infrastructure's shareholders approved the acquisition of Mobile Energy Rentals. The company is also providing a $29.75 million loan to facilitate the purchase of power generation equipment. Piper Sandler, an investment firm, maintained its Overweight rating on Solaris following these developments.
In terms of leadership changes, Solaris Energy announced that its COO, Kelly Price, will retire at the end of 2024. The company is currently seeking Price's successor from both internal and external candidates. These are among the recent developments that have been shaping the trajectory of Solaris Energy Infrastructure.
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