UK battery storage trust eyes GBP 230m from London IPO

Harmony Energy Income Trust plc, a UK energy storage assets investment trust, today announced plans to launch an initial public offering (IPO) on the London Stock Exchange to raise up to GBP 230 million (USD 313.8m/EUR 271.1m).

The new company will invest in commercial-scale energy storage and renewable energy generation projects, mostly with a construction-ready status. It will initially focus on a diversified portfolio of battery energy storage systems (BESS) in the UK and seek to build an initial portfolio of 1 GW.

The fund’s goal is to maximise the opportunity for potential risk-adjusted capital value growth.

The investment trust will look to float on the specialist Fund Segment of the Main Market of the London Stock Exchange through an initial institutional placing and offer for subscription. The issue will consist of up to 230 million new ordinary shares at an initial price of GBP 1 apiece. Upon admission, Harmony Energy Income Trust is expected to have a market capitalisation of around GBP 254 million.

The net proceeds from the deal will go for the acquisition of 213.5 MW/427 MWh of shovel-ready battery storage projects. The schemes are set to be purchased on admission from Harmony Energy Ltd. Following admission to the bourse, Harmony Energy Income Trust’s initial portfolio will grow to 315.2 MW/625 MWh after an additional 99 MW/198 MWh of advanced projects are purchased. Subsequently, it will have exclusive rights to buy 687.5 MW of BESS schemes, which are already within Harmony Energy’s control.

The fund noted it has contracted Tesla to supply batteries for its initial portfolio.

The targeted dividend yield is 8% per year, to be paid from 2023.

An IPO prospectus is expected to be published in due course, while the transaction is planned to take place early in November.

(GBP 1.0 = USD 1.364/EUR 1.179)

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