Invinity Energy Systems plans to raise at least £20 million with National Wealth Fund backing

what happened

UK-listed Invinity Energy Systems, a maker of vanadium flow batteries, said it intends to raise at least £20 million before expenses. The money will come from a subscription for new ordinary shares by the National Wealth Fund, a placing with institutional investors and a retail offer via the Winterflood WRAP platform. The issue price is 10 pence per share.

The National Wealth Fund, which already holds about 19% of the company's share capital, has agreed conditionally to subscribe for at least £10 million and up to £12.5 million. It has also conditionally agreed to match retail offer proceeds pound for pound, with the retail portion capped at £5 million and total size capped at £25 million. Invinity plans to use £10 million for accelerating development and cutting product costs, £8 million for working capital and £2 million for manufacturing capacity in the UK and US.

why it matters

For investors, the deal signals state-backed support for the company and its need for capital. Dilution for existing shareholders at 10 pence depends on the final size of the raise. The company also said its committed order book covers most expected FY 2026 revenue and more than half of FY 2027 expectations, and FY 2028 has been removed from its outlook.

market impact

Invinity shares: dilution from the share issue, offset by NWF support and new funds for growth

tags

instruments