Fluence eyes $4 billion valuation in planned IPO

The energy storage provider is a joint venture between Siemens AG and AES Corp., and said it aims to offer 31 million shares priced at between $21 and $24 each.

October 20, 2021 David Wagman

Deep-pocketed investors and utilities increasingly are targeting renewables.

By Alex Proimos from Sydney, Australia (Wall Street) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)]

Renewable energy storage firm Fluence Energy Inc. said it hopes to achieve a nearly $4 billion valuation in its U.S. initial public offering.

The company is a joint venture between Siemens AG and AES Corp., and said in a filing with the Securities and Exchange Commission it aims to offer 31 million shares priced at between $21 and $24 each. At the top end of that range, the IPO would result in $744 million in proceeds.

Arlington, Virginia-based Fluence serves major utilities, developers, as well as commercial and industrial businesses.

Units of AES and Siemens will continue to hold more than 91% of the voting power in Fluence after the offering, the company said in its filing.

J.P. Morgan, Morgan Stanley, Barclays and BofA Securities are the lead bookrunners for the IPO.

The filing said that based on preliminary internal estimates, new energy storage product contracts during the fiscal year ended September 30 amounted to around 1,311 MW, compared to 844 MW a year earlier. It said new energy storage products executed during the three months ended September 30 totaled around 821 MW, up from 279 MW during the same period in 2020.

The company estimated total revenue for the fiscal year will be between $650 million and $699 million, compared to $561.3 million a year earlier.

The filing said the company had been affected by supply chain disruptions and the closure of customer construction sites due to the pandemic. It said that disruptions could extend into its 2022 fiscal year. It said, “we have experienced and may continue to experience delays, disruptions, or quality control problems in our manufacturing operations in part due to our third-party supplier and manufacturer concentration.”

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