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Investment Opportunities

Fluence IPO: What Investors Should Know about FLNC Stock

Paperwork for the Fluence IPO is now public to investors. This renewable energy storage firm just set its terms for its public debut. Let’s break down the filing…

Fluence IPO: About the Clean Energy Unicorn

Fluence IPO

Fluence is a global clean energy storage provider. The company offers market-leading energy storage products and services. It also provides digital applications for renewables and storage. It serves major utilities, developers and commercial and industrial businesses around the world.

The company is on a mission to transform the way we power our world. And it has an eye on a more sustainable future. Fluence was founded in 2018 as part of a joint venture between German conglomerate Siemens and power producer AES.

The respective energy storage businesses of both companies laid the groundwork for Fluence before it launched. In fact, the company’s leadership includes some of the AES founding members. These are some of the people that deployed the world’s first grid-connected lithium-ion battery storage system back in 2007.

Together, the two companies have over 13 years of experience in energy storage and data-driven insight…

Fluence has built on AES’ industry-defining work in clean energy and storage operations and Siemens’ energy technology leadership and global sales presence. The result is an agile company with a global presence solely focused on enabling the clean energy transition.

Today, the company is one of the biggest suppliers of large-scale energy storage. In the investment community, there’s speculation that the energy grid is on the edge of disruption. Undoubtedly, many investors want to cash in on the transition to clean energy. And those investors care keeping a close eye on the Fluence IPO.

Fluence IPO Could be Catalyzing for Clean Energy Market

The clean energy sector is rapidly advancing as people turn away from fossil fuels. After news broke, finance expert Charles Lesser told Energy Storage that the Fluence IPO would help not only the company.

Moreso, in going public, Fluence could be a catalyzing event in the transition to clean energy. It will raise awareness of the global utility-scale storage industry, as well as renewable energy management software.

“In this regard, Fluence’s IPO will pay dividends for other companies,” Lesser said.

Fluence is one of the top players in the industry. And a successful Fluence IPO could pave the way for industry players. Subsequently, public capital could become more compelling for Fluence’s industry peers as investor interest soars alongside growing calls to limit climate change.

Fluence Worth Over $1 Billion After Funding

Detailed financial information is in the Fluence IPO prospectus. If you’re in the market for FLNC stock, let’s look at the details. The company’s profit and loss statement and balance sheet data is as follows…

Revenue: The company’s revenue has skyrocketed. Fluence recorded $92.2 million in revenue for the 2019 fiscal year. However, in 2020, Fluence’s reported revenue grew to over $561.3 million.

Gross Profit (Loss): Fluence’s gross profit is growing. The company recorded a gross loss of $7.9 million for the 2019 fiscal year. Conversely, in 2020 Fluence recorded over $7.9 million in gross profit.

Net Income (Loss): Fluence has reported consistent net losses. For the year ending December 2019, the company recorded $47 million in net losses. For 2020, the company’s net losses were $46.7 million.

Cash: Fluence’s cash flow has recently dropped. To illustrate, the company recorded $84.1 million in cash for the fiscal year 2019. The company’s cash rose to $93.8 million for the year 2020. However, for the six months ending June 2021, Fluence’s cash dropped to $58.5 million.

Total Assets and Liabilities: Fluence has reported increases in total assets and total liabilities. As of December 2019, the company reported $188.8 million in total assets and $163.3 million in total liabilities. As of June 2021, Fluence has $693 million in total assets. And it has $662.2 million in total liabilities.

Proceeds from the Fluence IPO will be used to repay outstanding borrowings. The rest of the proceeds will go toward working capital and other general corporate purposes, according to the filing.

Fluence is already valued at over a billion dollars. This came after a $125 million investment from Qatar Investment Authority. Nonetheless, a successful Fluence IPO could increase the unicorn’s market capitalization up to $4 billion.

Fluence IPO Could Value Company at $3 to $4 Billion

Fluence filed on September 28 and set its terms on October 19. The company plans to list on the Nasdaq under the ticker FLNC.

The company is offering 31 million shares of common stock. Shares will price between $21 and $24 per share. It’s expected to price during the week of October 25, 2021.

At $22.50 per share, the midpoint of its range, the Fluence IPO could raise $697.5 million. However, at $22.50 per share, Fluence Energy could command a market value of $3.8 billion. And the company could raise up to $744 million at the top end of the range.

JP Morgan, Morgan Stanley and Barclays are leading the offering.

The Fluence IPO is coming amid a hot IPO market. In fact, Vita Coco and NerdWallet are some popular IPOs to check out now.

As always, make sure to research before you invest. IPOs can be volatile for the first few months. And share prices are constantly changing. Moreover, if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.

If you’re looking for the latest investment opportunities, consider signing up for Liberty Through Wealth. This free e-letter is full of market insights from leading experts. You’ll hear from bestselling author and investment expert Alexander Green. It’s one of the easiest ways to stay on top of market news out there. All you need to do is enter your email address in the box below to get started.


About

Aimee Bohn graduated from the College of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been her primary focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphic design or traveling with friends.

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