Ceres Power Holdings (LSE:CWR) shares fell 4.6%, to 581.5p, after announcing an equity placing, retail offer and director share subscription, which are raising about £103 million of fresh capital to accelerate the firm's Solid Oxide Fuel Cell programme.
The proceeds will be used to accelerate momentum for SOFC technology and engage the company's growing pipeline of opportunities, Ceres said.
It is also expected to strengthen the group's balance sheet and allow selective investment to support partner scale‑up while maintaining key intellectual property, the company added.
Panmure Liberum downgraded Ceres to SELL from BUY, with analyst Alexandro da Silva O’Hanlon scommenting that he remains confident in Ceres’s solid oxide fuel cell and electrolyser technology but flagged three execution risks.
The analyst cautioned over a dependence on manufacturing partners to scale, operational challenges at early SOFC volumes while yields and unit costs stabilise, and the threat that incumbent power technologies could narrow the commercial window-and noted the shares have run about eightfold over 12 months and c.244% year‑to‑date.
Ceres will need to demonstrate partner manufacturing scale‑up, stabilising yields and unit costs at volume, he added.
