Investors in Australian internet and technology company Acorn are backing the Australian energy company with an investment of $10 billion, the company said in a statement on Thursday.
The company, which was founded in 2008, aims to make the Australian power grid more energy efficient by harnessing solar energy and geothermal energy to generate electricity.
Acorn said it had raised $10.4 million in seed funding from more than 100 investors, including US tech company Kleiner Perkins Caufield & Byers, which had earlier invested in the company.
Acronym, the acronym for Acorn Energy, is one of the world’s most prominent internet companies and has more than 20 million users worldwide.
Acorns co-founder Mark Filippetti said Acorn had been “really impressed with the scale and capabilities of Acorn” and that it was a good fit for the Australian market.
“It’s an opportunity to invest in a very large company that has a huge impact on the global economy,” Mr Filippini said.
Acarnas first investors are Australian and US tech giant Kleiner Pincus, as well as the Australian government’s investment arm, the Australian Renewable Energy Agency.
Acrnys initial public offering (IPO) is scheduled for 2019.
Acornt has been operating for more than a decade.
Its first offering in 2013 was worth $20 million, and it has raised more than $50 million from investors including the US government’s National Renewable Credit Union, US investor Bill Gates and Australian government-owned oil and gas company Occidental Petroleum.
Acernas IPO came as a surprise to investors, who had expected Acorn to be one of Australia’s biggest companies.
In its IPO statement, Acronys said it expected to be worth $1.5 billion, which would make it the fourth-largest publicly listed Australian company.
“Acorn is an energy company that is focused on providing energy to the Australian community and will help Australia become a clean energy superpower,” Acorn chief executive and chief operating officer Peter McQuaid said.
“The Acorn platform is one that will help build on the strong foundations of the Acorn energy platform and the industry that we have created.”
Acorn was founded by a group of Australian entrepreneurs who met through their time at the University of Queensland’s business school.
Mr McQuarey said Acrony was focused on creating a company that would create a new generation of energy producers, which he said would help “build the Australian economy”.
“We see this as a natural fit to build on what we have already built, which is the Australian infrastructure,” Mr McQarey told the ABC.
Acrent’s investors include the US-based Kleiner Cauford &) Byers Ventures, and Acorn’s US partner, Occidental.
The investment comes as Acorn faces a number of hurdles in the Australian regulatory environment.
It is a subsidiary of the energy giant Occidental, which operates in Australia and the United States.
Occidental owns an 80 per cent stake in Acorn.
Acrynt was founded as a subsidiary and owned by Acorn, and has had an Australian subsidiary for the past two years.
Acors IPO came after Acorn became embroiled in a dispute with the Australian Competition and Consumer Commission (ACCC), which said the company failed to provide enough information to investors about its energy business.
Acrons initial public post-IPO report showed it had been hit by a number issues including inaccurate information about the scale of the business and incorrect assumptions about the market, and that the company had failed to disclose information about its relationship with its Australian parent company.