Investors pile into battery storage investment trust as Harmony Energy raises £187m through IPO
- Harmony issued 210m ordinary shares at a price of £1 each, raising £186.5m
- Unconditional trading of the shares to commence next week on Tuesday
- Fundaraise demonstrates ‘significant’ investors’ appetite, chairman says
Battery energy storage company Harmony Energy Income Trust has raised around £187million through an initial public offering (IPO).
The company, based in Knaresborough, North Yorkshire, said that was the proof of ‘significant’ investors’ appetite for more climate-conscious assets.
Harmony specialises in battery storage plants, which allow electricity to be released on to the grid and sent to homes and businesses when it is most needed.
In demand: Harmony issued 210m ordinary shares at a price of £1 each, raising £186.5m
Harmony issued 210million ordinary shares at a price of £1 each, raising some £186.5million in gross proceeds.
Unconditional trading on the London stock exchange is set to begin on Tuesday next week.
The flotation proceeds will be used to buy six projects, capable of storing 312.5MW of electricity, which will be enough to power 95,000 homes a year.
Harmony has exclusive rights to acquire further sites over the next five years, capable of storing another 687.5MW of power.
Harmony, which has a longstanding relationship with Tesla, was one of our Midas tips for last week.
As we explain there, Tesla has agreed to provide state-of-the-art battery systems for Harmony’s initial portfolio of sites.
Max Slade of Harmony Energy Advisors, said the company was looking forward to building out their Seed Portfolio with Tesla ‘in line with our pre-defined timeline’.
He added: ‘Never has there been more focus on the need for a greener, more sustainable way of living. Battery storage, acting as an enabler for renewable energy generation, is key to the transition to net zero.’
The group will make its money from buying electricity on the wholesale markets when it is cheap, usually overnight from renewable sources, and selling it when it is most in demand – usually between 5pm and 7pm.
Harmony can do this by storing the energy in huge batteries, strategically located near local electricity distribution points.
Chairman Norman Crighton said: ‘We are delighted to be launching the Harmony Energy Income Trust, which will offer investors exposure to a portfolio of utility scale battery energy storage systems, located in diverse locations across Great Britain, which the Board believes have an important part to play in helping the UK achieve net zero by 2050.
‘Raising £186.5 million at launch demonstrates that there is significant appetite for the asset class and Harmony Energy Income Trust’s strategy.
‘We look forward to continuing to engage with our new shareholders.’