Soltec Power Holdings’ IPO prospectus approved and registered by CNMV

• The Company will issue shares for an initial amount of 150 million euros, and the Offering will be extendable in shares for an additional 15 million euros if the over-allotment option granted by its majority shareholder is executed
• The Offering is mainly addressed to international qualified institutional investors with a Non-Qualified Investors tranche (employees of the Company and selected related investors). The listing is expected to take place on October 29^th under the ticker “SOL”
• The market capitalization of Soltec Power Holdings will be between 370.5 and 440.4 million euros, according to the indicative and non-binding Offering price range, which has been fixed between 3.66 and 4.82 euros per offered share

The Comisión Nacional del Mercado de Valores (“CNMV”) today approved the prospectus for the Initial Public Offering (“Offering”) of Soltec Power Holdings new ordinary shares. The Company will issue new shares for an initial amount of €150 million. Additionally, the Offering may be extended with the sale of shares for an additional €15 million if the Joint Global Coordinating entities exercise the over-allotment option to purchase shares owned by the Company’s majority shareholder, Grupo Corporativo Sefrán, S.L., up to 10% of the initial offer. Furthermore, the Company and its current shareholders will agree to lock-up arrangements for the 180 days (the Company and Grupo Corporativo Sefrán) or 365 days (the remaining shareholders) that follow the listing of the shares on the Spanish Stock Exchanges.

Following the Offering, Grupo Corporativo Sefran will continue to be the majority shareholder of Soltec Power Holdings together with Valueteam.

The Offering will be executed in two tranches and will be mainly addressed to international qualified institutional investors. In addition, the Offering will include a “Non-Qualified Investors Tranche” through will be extend to employees of the Company and its Spanish subsidiaries, as well as to selected related investors. The Non-Qualified Investors Tranche will not exceed the greater of 2% of the initial Offering (not including the over-allotment option) and €3 million after application of a 10% discount to employees.

The listing on the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges is expected to take place the 29^th of October 2020 under the ticker “SOL”.

The indicative and non-binding price range guidance has been set between 3.66 and 4.82 euros per share which would place the market capitalization of Soltec Power Holdings following the offer between 370.5 and 440.4 million Euros. The final Offering price is expected to be determined on or about the 27^th of October 2020, following the completion of a book-building process which will start on the 16^th of October 2020.

Banco Santander, S.A. acts as Senior Joint Global Coordinator and Joint Bookrunner and CaixaBank, S.A. acts as Joint Global Coordinator and Joint Bookrunner (the “Joint Global Coordinators”), together with JB Capital Markets, Sociedad de Valores, S.A.U., and Joh. Berenberg, Gossler & Co. KG, both of them act as Joint Bookrunners (the “Joint Bookrunners” and together with the Joint Global Coordinators, the “Managers”). Rothschild & Co. acts as Financial Advisor to the Company.

With the Company’s market listing, Soltec Power Holdings aims to reinforce its transparency and corporate governance, as well as to strengthen and institutionalize the relationship with its internal and external stakeholders, while widening the shareholder base and diversifying its funding sources. In addition, as a result of becoming a listed company, Soltec Power Holdings also seeks to strengthen its role as a key player in the energy transition, by putting its integrated and sustainable business model at the service of this transition.

Mr. Raúl Morales, Chief Executive Officer of Soltec Power Holdings, underlined: “We look forward to beginning this new phase in Soltec’s history. We have been operating successfully for more than 15 years. We have a global and solid business with a remarkable growth track record and that operates in an industry, solar PV, with very positive perspectives of development for the next years at world-wide level.

We believe that we are in the best position to introduce our company to the market, as we are confident in the attractiveness of our value proposition to attract the attention of investors and to take advantage of the expected development in the coming years for the PV industry”.

Leading company in a key sector

Soltec Power Holdings is a leading global company specialized in providing integrated solutions in solar PV focused on tracking systems with a strong commitment to innovation. The company holds a top-three position globally, #1 in Mexico and Argentina and #2 in Brazil and Spain[1].

Headquartered in Murcia, Spain, Soltec has been active since 2004 and has a diversified geographical footprint focused on EMEA, North America and Latin America. Soltec is present in 16 countries worldwide with over 1,320 employees. Since its foundation, Soltec has delivered trackers for projects with a total cumulative installed capacity of c. 7.1 GW, of which 42% is in Latin America, 31% in North America (including Mexico), 25% in Europe, the Middle East and Africa and 2% in Asia-Pacific.

Soltec Power Holdings consists of:

• Soltec Industrial: tracker manufacturing business line, which also offers installation and construction services.
• Powertis: project development business line.

Soltec Industrial has an estimated order backlog of approximately €190 million (c. 1.8 GW) and an estimated order pipeline of approximately €2,148 million (c. 17.6 GW) as of 30 June 2020.  The order pipeline is calculated as the sums of potential revenue and MWs, respectively, from such projects not weighted by Soltec’s estimate of the probability it will sign an agreement in connection with them.

Regarding Powertis, it has an estimated development backlog of c. 1.3 GW and an estimated development pipeline of c. 3.8 GW, calculated as the sums of potential MWs not weighted by Soltec’s estimate of the probability that the project will be completed.

Both divisions operate in the different stages of a photovoltaic project, offering Soltec Power Holdings clients a comprehensive service that responds to the growing demand and development potential of the photovoltaic sector. The integration of both companies under Soltec Power Holdings also allows to reach numerous synergies and additional benefits.

[1] Per MW of solar trackers delivered in 2019 Source: IHS Markit Global PV Tracker Market Report 2020.