Opower, a US-based developer of an energy management platform, has set the range for its initial public offering between $17.00 and $19.00, and could raise up to $115.9m when it floats.
Established in 2007 and formerly known as Positive Energy, Opower is the developer of an energy management platform that enables customers to measure their energy use and utilities to increase their energy efficiency. It was one of the winners of GE’s 2010 Ecomagination Challenge, in which $55m of investment was split between 12 successful companies.
In addition to the Ecomagination financing, Opower has raised about $65.5m from investors including venture capital firms New Cycle Capital, New Enterprise Associates, Accel Partners and Kleiner Perkins Caufield Byers, and VC fund MHS Capital, with Accel, KPCB and NEA all participating in the company’s $50m series C round in 2010.
GE does not hold a substantial stake in Opower, according to the SEC filing for the IPO. NEA is the company’s largest shareholder and will hold a 19% share in the company after it goes public, while MHS, the next largest shareholder, will retain a 7.2% stake.
Opower’s service combines a cloud-based platform, big data analysis and behavioural science to help utilities reduce their customers’ energy consumption, and currently works with 93 utility partners, operating from offices in the US, the UK, Singapore and Japan. It intends to use the proceeds for general corporate purposes.
Morgan Stanley & Co. and Goldman, Sachs & Co. will be lead book-running managers for the IPO. Allen & Company, Pacific Crest Securities, Canaccord Genuity and Cowen and Company will serve as co-managers.