Context
Azelio is a Swedish renewable energy equipment company founded in 2008. It specializes in energy storage with electricity and heat production, developing a unique modular 24-hour dispatchable thermal energy storage (TES) solution.
In 2018, renewables represented 10% of global electricity generation capacity vs. 4.5% in 2015. This share is expected to increase to 19% by 2030 and 36% by 2050. With the growing replacement of fossil fuels by electricity from renewables, there is a massive need for energy storage solutions to match demand and production due to the intermittency of renewables, which can create grid instability.
Azelio is bringing to market a cost-competitive, efficient and carbon-free energy storage solution on the brink of large-scale commercialization. It has 14 MoUs signed for a total of 426 MWe to 5.4 GWe over 2021 – 2025, representing c. USD 2bn in potential sales.
This capital raise aims to fully finance Azelio into cash-flow break-even and enable it to commence volume production in Q3 2021, delivering on expected conversions of MoUs to commercial orders.
About Azelio
Azelio specializes in energy storage with electricity and heat production. The technology is revolutionary in that the energy becomes dispatchable, making renewable energy available around the clock. The energy is stored in recycled aluminium, from which it is converted into electricity and heat with a total efficiency of up to 90 percent. The solution is scalable, sustainable, and cost-efficient from 0.1 MW up to 100 MW. Azelio has approx. 160 employees with headquarters in Gothenburg, production in Uddevalla and development centres in Gothenburg and Åmål, as well as presence in Stockholm, Beijing, Madrid and Ouarzazate. Azelio is listed on Nasdaq Stockholm First North Growth Market with FNCA Sweden AB as Certified Adviser.
Deal Team
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Bryan, Garnier & Co acts as Joint Bookrunner to Azelio on its SEK 596 million Follow-on Offering
After acting as Joint Bookrunner for Azelio’s September 2020 SEK 270m Follow-on Offering, Bryan, Garnier & Co again acted as Joint Bookrunner alongside Carnegie and Pareto Securities on this SEK 596 million Follow-on for Azelio.
Following a strong and geographically diverse investor roadshow that revealed positive investor sentiment towards Azelio, confidential marketing was initiated with selected high-quality International and Nordic investors. This attracted during which substantial anchor interest, leading to an accelerated transaction launch and pricing.
Azelio was able to utilize its full authorized share capital and raise SEK 596m from international and Nordic investors, including Tier-1 cleantech and growth specialists, as well as selected high net worth individuals.
Despite a +160% rally since the previous capital raise in September 2020 priced at SEK 22 per share, the transaction came in at SEK 56 per share, representing a discount of 4.6% to the closing price.
This marks another landmark transaction for Bryan, Garnier and Co’s Smart Industries and Equity Capital Markets franchises after the Carbios, McPhy, Azelio I and Voltalia transactions in 2020. It demonstrates Bryan, Garnier and Co’s ability to generate international long-only cleantech and growth specialist demand.
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