Invinity Energy Systems (AIM:IES), the AIM-listed vanadium flow battery maker, is seeking to raise at least £20m before expenses through a subscription, an institutional placing and a separate retail offer, all priced at 10p per new share.
The issue price represents a 43.5% discount to the 17.7p closing mid-market price on 16 October, the last practicable date before the company entered a voluntary trading pause.
National Wealth Fund, the UK government's policy bank and already a holder of approximately 19% of Invinity's issued share capital, has conditionally agreed to subscribe for a minimum of £10m and up to £12.5m of new shares, contingent on the company securing matched funding from other investors at the same price.
Alongside this cornerstone commitment, National Wealth Fund has agreed to match pound-for-pound whatever is raised through the retail offer, provided the total fundraise does not exceed £25m, which would lift its maximum subscription to £12.5m.
The institutional placing, run as an accelerated bookbuild through joint bookrunners Canaccord Genuity, Panmure Liberum and VSA Capital, targets a minimum of £10m, while the retail offer, to be run via the Winterflood Retail Access Platform, aims to raise up to £5m.
Invinity set out how it intends to deploy the gross proceeds: £10m to accelerate product development and cost reduction, £8m for working capital, and £2m to invest in manufacturing capacity in the UK and the United States, with any excess funding further investment in production capacity and general working capital.
The company said proceeds will support working capital requirements into the first half of 2028, by which point it expects to have reached a number of commercial and corporate milestones.
Invinity reported net cash of £10.5m at 30 June, after a half-year loss that widened 14% to £12.1m on higher research and development spending tied to its Endurium cost-reduction programme, which targets at least a 66% cut in product cost per kWh versus its VS3 platform by late 2026.
The fundraise follows a run of commercial progress: the company's committed order book has grown to exceed 77 MWh for delivery across 2026 to 2028, including a 43 MWh order from Dairyland Power Cooperative secured in September, its largest to date, and it has flagged a total commercial pipeline exceeding 12.5 GWh.
Read more about Invinity Energy Systems
- 19/10/26Invinity confirms National Wealth Fund backing for £20m fundraise
- 19/10/26Invinity suspends shares to launch £20m fundraise
- 01/10/26Invinity battery at Viejas resort tops 1 GWh delivered
The company disclosed it has agreed commercial terms, subject to final documentation, with a Tier 1 insurer and a Lloyd's of London syndicate member for an investment-grade insurance wrap intended to support project financing for customers, with availability expected early next year.
Invinity also confirmed that Volker Beckers CBE, currently a non-executive director with more than 30 years in the energy industry including a decade as group CFO and then CEO of RWE npower, has been selected to succeed Neil O'Brien as non-executive chair, with the appointment taking effect on completion of the fundraise.
O'Brien, who is retiring after leading the board, has indicated he will subscribe for 500,000 placing shares, an investment of approximately £50,000, conditional on shareholder approval and admission.
The fundraise is conditional on shareholders approving resolutions at a general meeting scheduled for 11 November, with admission of the new shares expected at 8.00 a.m. on 12 November.