Invinity confirms conditional £25m fundraising

Invinity Energy Systems has confirmed a conditional £25 million equity fundraising following completion of its retail offer, increasing the total from the minimum £20 million proposed earlier in the week.

The 22 October result comprises a £10 million institutional placing, an approximately £12.2 million subscription from the National Wealth Fund and £2.8 million raised from retail investors. The transaction remains subject to shareholder approval and the admission of the new shares to trading.

Invinity expects to issue 250 million new ordinary shares at 10 pence each. These comprise 100 million placing shares, 121,976,365 subscription shares and 28,023,635 retail offer shares.

The final allocation follows the company’s 20 October fundraising proposal, under which the National Wealth Fund committed at least £10 million and agreed to match qualifying retail subscriptions, subject to a £25 million ceiling for the overall transaction.

Retail investors subscribed approximately £2.8 million through the Winterflood Retail Access Platform. The fund’s corresponding increase brought its proposed subscription to approximately £12.2 million, completing the maximum amount available under the announced fundraising structure.

These figures represent conditional gross proceeds before transaction expenses. They should not be treated as cash already available for the company’s operations.

The fundraising depends on resolutions to be considered at a general meeting on 11 November. Subject to approval and the remaining admission requirements, the new shares are expected to begin trading on AIM around 12 November.

Invinity also confirmed that its capital access window had closed, with trading in existing ordinary shares expected to resume on 22 October. That trading arrangement was introduced during the fundraising process and is separate from the proposed admission of newly issued shares.

The additional capital is intended to support the development and commercial production of Invinity’s vanadium flow battery systems, including its Endurium product platform.

The company’s initial allocation plan identified approximately £10 million for product development and cost reduction, £8 million for working capital and £2 million for manufacturing expansion in the UK and United States. Additional proceeds above the original minimum are intended to support further investment and operating requirements.

Manufacturing and working capital expenditure are closely connected during the expansion of an electrical equipment business. Components must be purchased, assembled and tested before completed systems can be delivered, while customers may have their own project financing and construction schedules.

Vanadium flow batteries store energy in liquid electrolytes circulated through electrochemical cell stacks. Charging and discharging involve changes in the oxidation states of vanadium ions, allowing electrical energy to be stored and subsequently recovered.

The electrolyte is held in external tanks and pumped through cell stacks, where electrochemical reactions take place. Power conversion equipment connects the battery’s direct current electrical system to the alternating current supply or network.

This arrangement provides a different relationship between power rating and stored energy from conventional batteries that package both functions within electrochemical cells.

The number and configuration of cell stacks primarily influence the system’s power conversion capability, while electrolyte volume and concentration contribute to its available energy capacity. Pumps, pipework, tanks, thermal controls and electrical equipment must be designed to support the intended operating configuration.

Longer storage duration can therefore be achieved through changes to the energy storage components without scaling every element of the power conversion system proportionately. The final economics depend on installation size, system efficiency, maintenance and the amount of useful electricity delivered over its lifetime.

Invinity is targeting applications where frequent cycling and extended operation can justify the characteristics of vanadium flow technology. Its stated commercial markets include electricity grid storage, industrial power applications and data centres with substantial electrical demand.

The company’s October trading information also describes an ongoing product cost reduction programme. Invinity reports a 60% reduction during the lifecycle of its previous VS3 platform and a further 62% reduction within Endurium from its initial development baseline to the current preproduction stage.

Those percentages relate to separate product development periods and must not be added together as a single cost reduction. The company is targeting further Endurium cost improvements towards 2030, with its programme independently reviewed by engineering assurance provider DNV.

Cost reductions achieved during product development do not establish the final installed cost of a customer project. Site preparation, electrical connections, civil works and other balance of plant requirements contribute to the total expenditure needed to commission a battery facility.

Commercial delivery also depends on projects advancing beyond preliminary discussions and development agreements. Invinity reported an unrisked commercial pipeline of approximately 12.8GWh as of September 2026, comprising development opportunities, frameworks and signed orders.

Of that total, approximately 11.8GWh consisted of development opportunities, while 842MWh related to framework arrangements and 77MWh to the contracted order book.

The distinction between these categories is substantial. Development opportunities can be subject to procurement decisions, financing and grid connections; framework arrangements may depend on further authorisation; and signed unconditional orders have a more defined contractual position.

The complete pipeline should therefore not be described as confirmed sales, funded installations or batteries under construction.

Invinity’s revised commercial outlook gives greater visibility over expected revenues in 2026 and 2027, while excluding a detailed 2028 forecast because the timing of further project conversions remains uncertain.

Customer financing, permitting and grid connection milestones can affect when storage orders are placed and equipment is delivered. These dependencies limit how precisely a manufacturer can forecast the conversion of prospective projects into revenue.

Manufacturing capacity must also be aligned with actual orders. Increasing production too quickly can place additional pressure on working capital, while insufficient capacity may restrict delivery if demand converts more rapidly than expected.

The National Wealth Fund’s participation reflects its existing investment in the business and its interest in UK electrical manufacturing. The fund has identified opportunities for Invinity to expand British production while supplying storage equipment to international markets.

The conditional £25 million financing would provide additional resources for this programme, but the final allocation and commercial results remain dependent on subsequent management decisions and project delivery.

Invinity’s immediate financial milestone is the shareholder vote on 11 November. Until the necessary resolutions are passed and the new shares admitted, the £25 million remains a conditional fundraising rather than a completed equity transaction.