Energy startup Ideal Power files for initial public stock offering

Nov 19, 2013
Austin American Statesman

Central Texas energy startup Ideal Power has filed for an initial public stock offering that could raise up to $16.1 million, according to documents filed with the U.S. Securities and Exchange Commission


The Spicewood-based company, which was founded in 2007, makes power converters that are designed to lower system costs and improve efficiency in solar and wind energy systems, motor drives and electric vehicles


Ideal Power plans to sell 2.875 million shares at $5 per share. At the same time, the company proposes to conduct a reverse stock split for existing shareholders that would offer one new share for each 2.38 old shares


The company raised $4 million in private investment in December to pay for product development and to fund growth. The deal was arranged by MDB Capital Corp., a California-based investment bank


The financing was Ideal Power’s first sizable private investment. It previously won a $1 million grant from the Texas Emerging Technology Fund. In 2011, the company teamed with Rensselaer Polytechnic Institute and Virginia Tech University to win a $2.5 million grant from the U.S. Department of Energy’s Advanced Research Projects Agency


Early customers have included the city of Austin; Austin Energy and the University of Texas at Austin. Ideal Power also licensed its technology to Lockheed Martin Corp. to develop military products


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