Invinity Energy Systems (LSE:IES) has announced plans to raise at least £20 million through a combination of institutional investment and a retail share offer, with proceeds intended to support product development, manufacturing expansion and working capital requirements.
The vanadium flow battery manufacturer is proposing a fundraising at 10 pence per share, comprising a cornerstone subscription from the National Wealth Fund, an institutional placing and a separate offer to retail investors.
The National Wealth Fund, an existing major shareholder, has committed to invest at least £10 million, with the potential to increase its participation to £12.5 million.
The fund may also match retail investor subscriptions on a pound-for-pound basis, subject to the proposed arrangements.
The total fundraising is capped at £25 million.
Invinity intends to allocate approximately £10 million of the proceeds to accelerate product development and reduce manufacturing costs.
A further £8 million is earmarked for working capital, while £2 million is expected to support additional manufacturing capacity in the UK and US.
The planned investment forms part of the company’s efforts to increase production efficiency and support the delivery of its existing commercial commitments.
Management said the fundraising would strengthen Invinity’s ability to execute its revenue plans for 2026 and 2027, which it considers well supported by existing commercial activity.
The company also reported a commercial pipeline exceeding 12.5 gigawatt-hours (GWh), although this figure represents potential business opportunities rather than confirmed revenue.
Invinity is working towards introducing an investment-grade insurance arrangement intended to improve the financial acceptability of its battery systems for prospective project customers and financing partners.
The company is also progressing projects including FlexBase’s Technology Centre Laufenburg, while implementing measures to reduce corporate overheads.
Invinity develops and manufactures vanadium flow batteries designed for long-duration energy storage applications, including electricity grid infrastructure and renewable energy integration.
For investors, the proposed fundraising represents a significant financing development, providing additional capital for operations and expansion if completed.
However, the issuance of new shares at 10 pence would increase the company’s share count and dilute the percentage ownership of existing shareholders who do not participate.
The final amount raised will depend on investor participation and the completion of the proposed subscription, placing and retail offer.
The National Wealth Fund’s commitment provides a minimum level of cornerstone investment, but the company has not confirmed that the full £25 million fundraising cap will be reached.
Looking ahead, investors will be monitoring the final fundraising proceeds, the number of new shares issued, progress on manufacturing cost reductions and the conversion of commercial opportunities into contracted projects.
The company’s ability to deliver its 2026–2027 revenue plans and implement the proposed insurance arrangement will also remain relevant to its operational and financial outlook.
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