Gas engine maker Innio ready for NASDAQ debut, raises $2.43B in IPO
Innio is set to begin trading on Nasdaq after raising $2.43 billion in an upsized initial public offering. The gas engine manufacturer, which provides power generation systems for data centres, benefited from strong investor demand linked to the rapid growth of artificial intelligence infrastructure. Demand for the company’s equipment has surged as data centre operators seek reliable energy sources to support AI workloads. Innio’s data centre order book reached $1 billion in March, highlighting growing interest in businesses that supply the power, equipment and services needed to support the expanding AI industry.
Key Highlights
- Innio upsized IPO to $2.43 billion
- The company offered 90 million shares at $27 per share.
- Innio makes power systems utilised by data centres.
- Demand is increasing on account of the high-power requirements for AI needs.
- The firm will begin trading on Nasdaq.
Innio IPO Sees Strong Demand Before Nasdaq Listing
Innio, which is making its Nasdaq debut on Thursday after raising $2.43 billion in an upsized IPO. The gas engine maker sold 90 million shares at $27 each, the top end of its marketed price range of $24 to $27 a share as strong investor demand drove.
At its core is the Munich-based company, which has been funded by AI Alpine whose owners comprise funds managed by Advent International and on behalf of Abu Dhabi Investment Authority. Innio was formed in 2018 when Advent bought and split General Electric's distributed power business in a $3.25 billion transaction.
Investors have stepped it up in targeting companies that aid the rapid expansion of artificial intelligence infrastructure. But, while chipmakers have earned plenty of headlines, demand is now reaching the businesses that supply the power, cooling and kit to run big ai data centres.
Innio Sees `80% Demand Surge for Power Systems as AI Data Centre Boom Continues
Innio makes gas engines under the Jenbacher and Waukesha brands that provide power generation systems for data centres, industrial facilities, microgrids, gas compression projects and grid stabilisation. Data centres are experiencing growing demand for alternative power solutions due to constrained electricity, which has played in its favour.
The rapid growth of AI computing has raised electricity demand and created opportunities for companies capable of delivering reliable energy infrastructure. Innio's backlog of orders for its data-centre gear, soared to $1 billion as of March 31 from $309 million a year earlier. It has also earned several key contracts, including one related to a multi-gigawatt power plant.
Among Innio's biggest clients is the city of Kiel, Germany, where its systems deliver electricity and heating to thousands. Analysts said Schneider's ability to turn positive equipment sales into ongoing maintenance and service revenues will be key to the long-term success of the business, as operators of data centres need guarantees on support for their power systems over many years.
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