Solar energy company Solaer Israel is planning an offering on the Tel Aviv Stock Exchange (TASE), sources inform "Globes." The planned offering, which is still in the initial stages, will be led by Value Base. It is unknown whether the offering, slated for the first quarter of 2018, will consist of an issue of shares, bonds, or a combination of the two. An offering in the tens of millions of shekels is planned, with the proceeds designated for further investment in various projects in which the company is currently involved and others that it is planning.
The shares of four "pure" solar energy companies are already listed on the TASE: Energix Renewable Energies Ltd. (ENRG), Enlight Renewable Energy Solutions Ltd. (TASE:ENLT), Sunflower Sustainable Investments Ltd. (TASE: SNFL), and Solegreen Ltd. (TASE:SLGN). There are also other companies whose primary business is in real estate and infrastructure, including Shikun & Binui Holdings Ltd. (TASE: SKBN) and Lahav LR Real Estate Ltd. (TASE: LAHAV).
According to its website, Solaer Israel was founded in 2009 by a group of entrepreneurs from Spain and Israel with vast international experience in energy, especially solar energy. The company initiates, develops, constructs, and operates renewable and conventional electricity production facilities.
Solaer Israel is a member of Spanish group Solaer, a leader in the Spanish solar energy market, according to the company's website. Over the past five years, the company initiated, developed, and built 100 projects in Israel with a total capacity of 60 megawatts. The company carries out all of the development and performance stages of energy projects, while relying on strategic cooperation with leading global engineering companies for particularly difficult projects.
The company's offices are located in the Ness Ziona science park. The company has dozens of employees, and hires, either by itself or through outsourcing, additional workers and managers as needed for the construction and operation of its projects. Solaer entered its main project, located in Ramat Hovav, in cooperation with Energix Renewable Energies; Energix owns 70% of the project and Solaer 30%. This venture currently constitutes Solaer's main activity, but the company is planning expansion, including through the offering, to the construction and development of solar fields in Israel and overseas, beyond this agreement.
Like other solar energy companies, Solaer enjoys very strong support from two main factors: the global slide in solar panel prices in recent years, which now makes it possible to build solar farms at competitive prices cheaper than coal and natural gas, and a boom in the company's business over the past year, following stagnation in the preceding years. Although the sale prices for projects have fallen sharply in recent years, companies operating in the field are still achieving returns in excess of 10% in most ventures.
Another Public Utilities Authority (electricity) tender, the second of six scheduled by mid-2019, was closed yesterday. It involves the construction of solar farms with a total capacity of 105 megawatts at the lowest-ever rate - NIS 0.1978, less than half the price paid to Israel Electric Corporation (IEC) (TASE: ELEC.B22) by home consumers. Solaer and Energix won a quota for construction of facilities for the production of 40 megawatts. Construction of the facilities is slated for completion within two years.
The first tender for construction of solar fields with a total capacity of 1,000 megawatts at a price of NIS 0.199 per kilowatt-hour was closed in March. Solaer and Energix won a quota for 70 megawatts in that tender.
Published by Globes [online], Israel Business News - www.globes-online.com - on December 26, 2017
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