Key facts
- Innio's shares closed up 23% on its Nasdaq debut.
- The stock opened at $31 and closed at $33.30.
- Innio achieved a market value of approximately $25 billion.
- The upsized offering raised $2.43 billion at $27 per share.
- Innio provides power generation systems for data centers, addressing AI's energy needs.
Gas engine manufacturer Innio's shares closed up 23% on Thursday in a strong Nasdaq debut, continuing a trend of successful listings for companies linked to AI infrastructure. The Munich-based company's stock opened at $31 and closed at $33.30, giving it a market value of approximately $25 billion. Innio's principal shareholder, AI Alpine, which is co-owned by funds managed by Advent International and the Abu Dhabi Investment Authority, sold 90 million shares in an upsized offering at $27 each, the top of the marketed range, raising $2.43 billion. Investors are showing enthusiasm for companies that supply the infrastructure for the AI buildout, extending beyond chipmakers to "picks and shovels" businesses. Innio provides power generation systems for data centers, addressing the significant energy requirements of AI. Demand for its gas engines has surged as data center operators seek alternative power sources to mitigate grid constraints. Innio's data center equipment orders increased to $1 billion as of March 31, up from $309 million a year prior, including a multi-gigawatt power plant agreement. The company, formed in 2018 when Advent International acquired General Electric's distributed power business for $3.25 billion, aims to convert its growth story into sustained revenue to justify its valuation.