Origin Energy Limited (OGFGF.PK,ORG.AX) has provided an update on a suite of transactions executed in relation to Kraken Technologies Limited. These agreements highlight Kraken's continued global growth, reinforce its technology leadership, and provide the capital required to support its formal separation from Octopus Energy.
Kraken will undertake its first standalone equity raising of US$1 billion from a pool of new investors and existing shareholders, targeting completion of the separation from Octopus Energy by mid-2026. This investment round values Kraken at US$8.65 billion, marking its first standalone valuation. Origin will participate with an investment of US$140 million.
As part of the process, Kraken has signed a major licensing agreement with a leading energy retailer, adding over 10 million customer accounts. This strategic customer will also participate in the equity raise. The US$1 billion raised will be split, with US$150 million retained in Kraken and US$850 million retained in Octopus Energy. In addition, Octopus Capital and other investors will inject a further US$320 million into Octopus Energy to support future growth.
The last equity transaction in March 2024 valued Octopus Energy and Kraken combined at US$9 billion. The latest valuation of US$8.65 billion for Kraken alone reflects strong investor confidence and significant growth potential, with contracted Annual Recurring Revenue more than doubling in the past 18 months. Post-separation, Octopus Energy will retain a 13.7% interest in Kraken as its foundation customer.
In a separate agreement, Origin has waived its exclusivity to the Kraken platform in Australia in exchange for an additional 1.5% equity interest in Kraken. This enables Kraken to license its platform to other utilities in Australia without restriction.
Following the transactions, Origin will hold a direct interest of 19.6% in Kraken, along with an indirect interest of 3.1% through its equity stake in Octopus Energy. Origin's overall economic interest in both Kraken and Octopus Energy remains at 22.7%.
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