Ideal Power Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Ideal Power (Nasdaq: IPWR) has commenced an underwritten public offering of its common stock, with a 30-day underwriter option to buy up to 15% additional shares to cover over-allotments. The company expects to use net proceeds to advance commercialization of B-TRAN, customer design-ins, custom development, initial production ramp with partners, and for general corporate and working capital purposes.

The offering is being made from an effective Form S-3 shelf registration (No. 333-292492) and is subject to market conditions; actual size and terms will be disclosed in a prospectus supplement.

Positive

• Use of proceeds targeted to commercialize B-TRAN and fund production ramp
• Offering covered by an effective Form S-3 shelf registration (No. 333-292492)
• Underwriter option provides up to 15% over-allotment capacity

Negative

• Primary share sale by company implies potential shareholder dilution
• Offering completion and size are uncertain and subject to market conditions

Key Figures

Underwriter option period: 30 days Over-allotment size: 15% of shares Registration number: Form S-3 No. 333-292492 +5 more

8 metrics

Underwriter option period 30 days Option for underwriter to purchase additional common stock

Over-allotment size 15% of shares Additional shares to cover over-allotments, if any

Registration number Form S-3 No. 333-292492 Effective registration statement referenced for this offering

Filing date December 30, 2025 Date Form S-3 was filed with the SEC

Effectiveness date January 9, 2026 Date the registration statement was declared effective

Bookrunner phone (929) 833-1246 Contact number for Titan Partners regarding the offering

Office floor 49th floor Titan Partners Group office location in 4 World Trade Center

ZIP code 10007 New York, NY address ZIP in offering contact details

Market Reality Check

Price: $3.26 Vol: Volume 104,831 is below 2...

normal vol

$3.26 Last Close

Volume Volume 104,831 is below 20-day average 133,902 (relative volume 0.78x) ahead of the offering news. normal

Technical Shares at $3.57 are trading below the 200-day MA of $4.62 and about 48.26% under the 52-week high.

Peers on Argus

Only one momentum-scanned peer (XPON) showed a move, down ~1.72%, while sector p...

1 Down

Only one momentum-scanned peer (XPON) showed a move, down ~1.72%, while sector peers in the equipment space had mixed, mostly modest moves. This supports the view that the proposed equity raise is a company-specific catalyst rather than a coordinated sector move.

Previous Offering Reports

3 past events · Latest: Mar 28 (Negative)

Same Type Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Mar 28	Equity offering close	Negative	-4.4%	Closing of a $15 million public offering of common stock.
Mar 25	Offering pricing	Negative	-4.9%	Pricing announcement for a $15.0 million public equity offering.
Mar 25	Proposed offering	Negative	-4.9%	Announcement of a proposed public offering of common stock.

Pattern Detected

Prior equity offerings have consistently been followed by single-day share price declines in the mid‑single‑digit percent range.

Recent Company History

In the past, Ideal Power has repeatedly accessed the capital markets via public offerings. Three offering-related announcements in March 2024 (proposed, pricing, and closing of a $15M deal) all saw next-day moves of roughly mid‑single‑digit declines, with an average move of about -4.73%. Against that backdrop, today’s proposed common stock sale continues the company’s pattern of using follow-on offerings to fund ongoing commercialization efforts.

Historical Comparison

-4.7% avg move · In the past year, Ideal Power issued 3 offering-related releases, each followed by mid-single-digit ...

offering

-4.7%

Average Historical Move offering

In the past year, Ideal Power issued 3 offering-related releases, each followed by mid-single-digit share declines, averaging -4.73%, framing expectations around capital-raise headlines.

The company has repeatedly relied on public equity offerings, from proposal to pricing and closing, establishing a pattern of follow-on capital raises to support operations and commercialization.

Market Pulse Summary

This announcement outlines a new underwritten public offering of common stock, with a potential 30‑d...

Analysis

This announcement outlines a new underwritten public offering of common stock, with a potential 30‑day over‑allotment option of up to 15% of the shares. Proceeds are earmarked for B‑TRAN® commercialization and general corporate purposes. Historically, Ideal Power has used similar offerings to fund operations, while recent filings highlight ongoing losses and capital needs. Investors may watch final pricing, deal size, and subsequent cash burn and commercialization milestones to gauge the impact.

Key Terms

underwritten public offering, over-allotments, bookrunner, prospectus supplement, +2 more

6 terms

underwritten public offering financial

"it has commenced an underwritten public offering for the sale of its common stock"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

over-allotments financial

"to purchase additional common stock in an amount up to 15% ... to cover over-allotments"

An over-allotment is a temporary extra batch of shares that the underwriters of a stock offering are allowed to sell beyond the original amount, with the right to buy those shares back later. Think of it as spare tickets sold to meet demand and then reclaimed if needed to keep the market orderly; it helps stabilize the stock price after an offering and can affect short-term supply and potential dilution, which matters to investors tracking price and ownership stakes.

bookrunner financial

"Titan Partners, a division of American Capital Partners, is acting as the sole bookrunner"

A bookrunner is the lead bank or financial firm that organizes and manages a new securities offering, acting like a project manager who sets the price range, collects investor demand, and decides how shares are allocated. For investors, the bookrunner’s choices and reputation influence the final price, how many shares each buyer receives, and the overall chance the deal succeeds — similar to how a trusted referee shapes a fair and well-run auction.

prospectus supplement regulatory

"only by means of a prospectus supplement and the accompanying base prospectus"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

base prospectus regulatory

"prospectus supplement and the accompanying base prospectus that form a part"

A base prospectus is a detailed document that provides essential information about a financial offering, such as a bond or share issue. It acts like a comprehensive guide for investors, explaining what the investment involves, the risks involved, and how the process works. This helps investors make informed decisions before committing their money.

registration statement regulatory

"base prospectus that form a part of the registration statement"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

AI-generated analysis. Not financial advice.

AUSTIN, Texas, Feb. 23, 2026 /PRNewswire/ -- Ideal Power Inc. (Nasdaq: IPWR) ("Ideal Power," the "Company," "we," "us" or "our") today announced that it has commenced an underwritten public offering for the sale of its common stock. In connection with the offering, Ideal Power expects to grant the underwriter a 30-day option to purchase additional common stock in an amount up to 15% of the shares of common stock offered in the offering, to cover over-allotments, if any. Ideal Power intends to use the net proceeds from this offering to advance commercialization of B-TRAN®, including customer design-ins, custom development programs, and initial production ramp with strategic partners, and general corporate and working capital purposes. The offering is subject to market conditions and other factors, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. All shares of common stock to be sold in the proposed offering will be sold by Ideal Power.

Titan Partners, a division of American Capital Partners, is acting as the sole bookrunner for the proposed offering.

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (No. 333-292492) (including a base prospectus) previously filed with the U.S. Securities and Exchange Commission (the "SEC") on December 30, 2025, and declared effective on January 9, 2026. The shares of common stock may be offered only by means of a prospectus supplement and the accompanying base prospectus that form a part of the registration statement. A preliminary prospectus supplement and the accompanying base prospectus relating to and describing the terms of the proposed offering have been filed with the SEC. Before investing, prospective investors should read the preliminary prospectus supplement, the accompanying base prospectus and the documents incorporated by reference therein for more complete information about the Company and the offering. These documents, including the preliminary prospectus supplement relating to the offering, are available for free on the SEC's website at www.sec.gov. Copies of the final prospectus supplement, when available, and the accompanying base prospectus relating to the offering may be accessed for free on the SEC's website at www.sec.gov or obtained by contacting Titan Partners Group LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 49th Floor, New York, NY 10007, by phone at (929) 833-1246 or by email at prospectus@titanpartnersgrp.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Ideal Power Inc.

Ideal Power (NASDAQ: IPWR) is the developer and provider of its innovative and widely patented B-TRAN® bidirectional semiconductor power switch. B-TRAN® offers compelling advantages over conventional technologies and addresses the demanding standards of today's solid-state circuit protection and intelligent power delivery systems. It features very low conduction losses that deliver improved power efficiency, thereby reducing energy consumption and providing cost savings. The unique bidirectional capability of B-TRAN® simplifies the design, control and diagnostics of solid-state power solutions while enabling smaller, lower cost systems. B-TRAN® delivers compelling advantages for a broad spectrum of applications including solid-state circuit breakers, static transfer switches, battery disconnect units and EV contactors that are widely used in data centers, industrial power systems, energy grid and storage systems, and electric vehicles and charging infrastructure.

Contacts

For investor inquiries:
Jeff Christensen
Darrow Associates Investor Relations
jchristensen@darrowir.com
703-297-6917 

Safe Harbor Statement
All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power's management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Such forward-looking statements include, but are not limited to, statements regarding the proposed public offering of common stock and expected use of proceeds. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the success of our B-TRAN^® technology, including whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRAN^® technology, the rate and degree of market acceptance for our B-TRAN^®, the impact of global health pandemics on our business, supply chain disruptions, and the expected performance of future products incorporating our B-TRAN^®, and uncertainties set forth in our quarterly, annual and other reports filed with the SEC. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements, except as required by applicable law.

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SOURCE IDEAL POWER INC.

FAQ

What did Ideal Power (IPWR) announce on February 23, 2026 about a stock offering?

Ideal Power announced it commenced an underwritten public offering of its common stock on February 23, 2026. According to the company, the offering is on an effective Form S-3 shelf and may include a 30-day underwriter option to purchase up to 15% additional shares.

How will Ideal Power (IPWR) use proceeds from the proposed offering?

Proceeds are intended to advance commercialization of B-TRAN and related activities. According to the company, funds will support customer design-ins, custom development programs, initial production ramp with partners, and general corporate and working capital needs.

Who is the underwriter for Ideal Power's (IPWR) February 2026 offering?

Titan Partners, a division of American Capital Partners, is acting as the sole bookrunner for the proposed offering. According to the company, Titan Partners is the primary contact for prospectus requests and underwriting coordination.

Will the Ideal Power (IPWR) offering include an over-allotment option and how large is it?

Yes. The offering includes a 30-day underwriter option to purchase up to 15% additional shares to cover over-allotments. According to the company, this option is standard to manage demand and stabilize the offering.

Is the Ideal Power (IPWR) offering guaranteed to close and when will terms be available?

No, the offering is not guaranteed to close and is subject to market conditions and other factors. According to the company, final size and terms will be disclosed in a prospectus supplement filed with the SEC.

Where can investors find the Ideal Power (IPWR) prospectus supplement and registration details?

Investors can access the preliminary prospectus supplement and base prospectus on the SEC website at www.sec.gov. According to the company, final prospectus materials will also be available on the SEC site when issued.