Everything You Need to Know About the FTC Solar IPO

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Dennis Hammer is a writer and finance nerd with six years of investing experience. He writes about personal finance for Wealthsimple. Dennis also manages his own investment portfolio and has funded several businesses in the past. Dennis holds a Bachelor's degree from the University of Connecticut.

FTC Solar is a player in the solar industry. If you like renewable energy stocks, this one might be for you. In this article, we’ll explain what FTC Solar is, why investors like it, and how to buy shares.

What is FTC Solar?

FTC Solar was founded in 2017 by a group of renewable energy industry experts. The company is a global provider of solar tracker systems and other technology. Tracker systems are key parts of solar arrays that reorient solar panels toward the sun for maximum sunlight.

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Additionally, FTC Solar works with their customers to design and construct new solar projects. FTC Solar representatives even join their customers on the construction project for a short time to walk new installers through the process.

FTC Solar aoffers three software products developed specific for the solar industry: 1) Energy yield enhancement software that can increase solar energy production,. a solar system design tool, and a project management system for solar projects.

Presently, FTC Solar has 11% market share in the U.S. The company had revenue of $187.4 million in 2020, compared to $53.1 million the previous year.

What is FTC Solar’s current market cap?

As of May, 2021, FTC Solar’s market cap is $916.1 million. We use market cap to gauge the value of a stock. It refers to the total dollar value of a company’s outstanding shares, including all shares owned by private investors, company officials, and retail investors.

When is the FTC Solar Taking Place?

FTC Solar’s IPO took place on April 28, 2021. It listed 19.8 million shares of its common stock on the Nasdaq under the ticker symbol FTCI. Shares were listed at $13 and quickly rose to $15.46. Proceeds will be used for general corporate purposes, the company said, with a portion used to purchase shares of its common stock back from certain company officials.

Why are people interested in buying FTC Solar shares?

Investors like FTC Solar because it has a unique product in a rapidly growing space. Fortune Business Insights estimates the global market for solar trackers to be $9.3 billion in 2019 and expects it to exceed $22 billion by 2027.

Furthermore, there’s a global effort to cut emissions and shift to renewable energy sources. That will undoubtedly include a lot of solar. Mass adoption of solar-related technologies is right around the corner. FTC Solar is positioned to be a big player in the future.

How can I buy shares of FTC Solar?

Now that FTC Solar has completed its nitial public offering, shares are available to purchase through most brokerages and trading platforms. In order to trade its stock follow these four steps:

Step 1: Open a brokerage account

Your first step is to open an account with a brokerage. A broker is a financial institution that allows retail investors to buy and sell shares of stocks and other securities. Wealthsimple, for example, is a broker.

You may already have a brokerage account. If so, you can use it to purchase shares of FTC Solar. If you are looking for a brokerage account, we recommend choosing one that offers low fees and emissions. If they charge fees for trading, make sure you understand the fee structure.

Furthermore, whichever platform you choose should be easy to use for investors. It should also give you access to other securities and financial products in case you decide to expand your portfolio in the future.

Once your account is open, the brokerage will require you to deposit funds. You will use this money to purchase shares. This step is likely part of the brokerage’s onboarding process.

Step 2: Decide how many shares you want

Before you can purchase shares of FTC Solar, you’ll have to decide how you want to buy. Fortunately, this is a simple calculation. Divide the total amount you want to invest by the price of an individual share.

For example, if you’re willing to invest $3,000 and Oatly costs $20 per share, you can afford to buy 150 shares. ($3,000 / $20 = 150).

Like with any stock, purchasing shares of FTC Solar comes with some risk. While we hope the value of the stock continues to rise, there’s a chance it could fall. Never invest more money than you can afford to lose. We recommend diversifying your portfolio with different kinds of securities to reduce the risk of losing everything.

Step 3: Choose your order type

You’ll need to make one more decision before you execute your trade: how you’ll buy your shares. There are two ways to purchase shares. Each method will affect the total you pay for those shares.

Market order: This is an order to trade the stock at the current price when the order reaches the exchange. You don’t have any control over the final price once you submit your trade. Popular stocks tend to trade close to order prices, but there’s no guarantee of that.

For instance, if FTC Solar is currently trading at $20/share and you place a market order for 20 shares, you’ll pay something close to $400. By the time the order is filled, the price may be $20.50/share or $19.75/share. There’s often a little fluctuation.

Limit order: A limit order is an order to buy or sell a security at a specific price. Your order price is the final price you pay, but it may take some time for the trade to execute. Purchase limit orders are only executed at the limit price or lower. Sales limit orders are executed at the limit price or higher.

For example, if FTC Solar is currently trading at $20/share and you place a limit order to purchase shares at $18 a share, your order will only be fulfilled when the price falls to $18 or less. Nothing will happen until the share price matches your order price.

Step 4: Execute the trade

The last step is to execute your trade on the trading platform. From here, your broker does all of the work. The brokerage deducts the funds from your account. You’ll see the new shares in your portfolio soon. Some brokers cancel unfulfilled orders at the end of the day, others leave them open, so check with your broker to learn how they handle these situations.

Last Updated June 29, 2021

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