Advent, ADIA-backed gas engine maker Innio targets $20.3 billion valuation in US IPO

May 26 (Reuters) – Gas engine manufacturer Innio said on Tuesday it was targeting a valuation of up to $20.25 billion in a U.S. initial public offering, as it looks to tap investor appetite for companies powering the AI boom.

Munich, Germany-based Innio’s principal shareholder AI Alpine – co-owned by funds managed by Advent International and Abu Dhabi Investment Authority – is seeking up to $2.03 billion in the IPO by offering 75 million shares priced between $24 and $27 per share.

As investors remain jittery over AI’s potential to disrupt businesses, focus has shifted to the “picks and shovels” fueling the technology’s buildout – from electrification to the supply chain for data centers.

Innio makes gas engines under its Jenbacher and Waukesha brands for critical infrastructure such as data centers, and has benefited from rising electricity demand tied to the AI-driven buildout.

Its annual data centre equipment orders grew roughly 16-fold between 2020 and 2025.

U.S. buyout firm Advent International carved out General Electric’s distributed power business to form Innio as a standalone company in a $3.25 billion deal in 2018. In 2023, sovereign wealth fund ADIA took a minority stake in the firm.

Under Advent’s ownership, Innio has strengthened its North American footprint, ramping up investments in U.S. manufacturing and assembly capacity.

Goldman Sachs, J.P. Morgan and Morgan Stanley are joint lead book-running managers for the offering. Innio will list on the Nasdaq under the symbol “INIO”.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Vijay Kishore)