Ideal Power launches IPO to raise $15M

Nov 25, 2013
Austin Business Journal

Photovoltaic inverter developer Ideal Power Inc. launched an initial public offering of its stock Friday to raise $15 million


The Spicewood-based company, which quietly registered for an IPO in August, is offering 3 million shares at $5 each, according to a news release


Ideal Power (Nasdaq: IPWR) initially listed a raise goal of $16.1 million but would only complete the IPO if it raised a minimum of $10 million.


Ideal Power, which was founded in 2007 as Ideal Power Converters, joined the Austin Technology Incubator in October 2008. The company has nine employees


Ideal Power plans to use $4.5 million generated by an IPO for new product research and development, and about $2 million for existing product development and commercialization. The company would use about $1 million for the protection of its intellectual property and $1 million to buy equipment and software, the filing shows


In mid-August, Ideal Power completed a $750,000 financing from 13 investors, according to another SEC filing. In December 2012, the company received a $4 million convertible debt financing from California investment bank MDB Capital Group LLC to accelerate the development and deployment of its products for several markets, officials said


In 2011, it received a $2.5 million grant from the U.S. Department of Energy’s Advanced Research Projects Administration — Energy as part of a $156 million package to encourage cutting edge energy research and projects nationally


In December 2010, the company received a $1 million grant from the Texas Emerging Technology Fund, just weeks after collecting $240,000 from a lone investor out of a planned $490,000 funding round


Ideal Power would be the fifth Central Texas company to complete an IPO this year. The others were LDR Holding Corp. (Nasdaq: LDRH) in October; Jones Energy Inc. (NYSE: JONE) in July; RetailMeNot Inc. (Nasdaq: SALE) in July; and USA Compression Partners LP (NYSE: USAC) in January


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