Ideal Power Inc. (NASDAQ:IPWR) shares dropped 16.9% on Tuesday after the company unveiled plans for an underwritten public offering alongside a concurrent private placement expected to generate roughly $14.0 million in gross proceeds.
The Austin, Texas–based semiconductor developer said it priced a public offering of 4,458,736 shares of common stock, or pre-funded warrants in lieu of shares, raising approximately $12.3 million before expenses. In parallel, the company agreed to a private placement of pre-funded warrants covering up to 631,332 shares, expected to deliver an additional $1.7 million in gross proceeds.
Both transactions are scheduled to close on February 25, 2026, subject to customary closing conditions.
The financing round was led by Ideal Power’s largest institutional shareholders and also included participation from company insiders, among them its chief executive officer. Titan Partners, a division of American Capital Partners, is serving as the sole bookrunner.
Ideal Power said the proceeds will primarily support commercialization efforts for B-TRAN, its bidirectional semiconductor power switch technology. Planned uses include advancing customer design integrations, funding custom development initiatives, supporting early-stage production ramp-ups with strategic partners, and covering general corporate and working capital needs.
The stated gross proceeds exclude underwriting discounts, commissions, and other transaction-related expenses payable by the company.