Solair will issue in Tel Aviv at a value of 800 m – the capital market

Another member of the renewable energy sector joins the Tel Aviv Stock Exchange: Solair has issued a prospectus for an initial public offering, in which it will probably try to raise NIS 150-200 million at a value of NIS 750-800 million “after the money”. The offering will be led by Epsilon and IBI workers.

Solair was founded in 2009 by Alon Segev, who serves as CEO and his wife, Paula Willin Segev, the company’s chairman. The company initiates, develops, establishes, operates and maintains electricity generation facilities from solar energy in Israel and Europe (mainly Spain and Italy).

The installed capacity of the completed projects is 400 megawatts, the scope of the projects in commercial operation and its share in projects in commercial operation, prior to construction and erection, is estimated at 123 megawatts. In addition, the company has accumulated projects in commercial operation and various development stages of 1.4 gigawatts – 161 megawatts in connected projects / under construction / preparation for construction, 207 megawatts in projects in advanced development and about 1 gigawatts in the initiation stages.

In the first half of 2020, the company’s revenues totaled NIS 3.7 million, reflecting a revenue rate of 7.4 per year – almost half of the NIS 13.8 million revenue in 2019 as a whole. Expenditures were of a similar magnitude, with 11.4 million in the half of 2020 compared to 21 million in all of 2019. However, the loss deepened to NIS 7.6 million in the half of 2020 – a loss higher than the NIS 7.3 million it recorded throughout 2019.

As of 2019, Solair is constructing 140 solar systems on rooftops in Israel, in projects whose duration of regulation is 25 years with an expected annual income of NIS 40 million and FFO of NIS 18.1 million per year, with Solair’s share being 90% of the amount.

In Spain and Italy, Solair operates in collaboration with a local team. Spain is working in the company on 4 projects in the construction stages / towards construction / advanced and initiated development. In the coming year, Solair expects to operate two facilities in Italy, one in the second quarter and the other in the third quarter, with annual revenues of NIS 13.7 million and NIS 8.5 million, with 71% and 47%, respectively. At the end of the year, it will begin to establish another facility in the country, with an expectation of commencing operation during 2022 and an annual income of NIS 15.6 million, with a share of 51%.

According to data published by Solair, by 2024 its projects will generate an annual income of NIS 160 million in Israel, and NIS 290 million abroad. In terms of power, the target for 2025 is 4 gigawatts of all projects in all phases. Hoarding in their photovoltaic facilities and developing energy management systems. Solar also notes that they are “examining the feasibility of creating a synergy between electricity generation and water production in projects that combine transmission and water supply in energy production systems.”