Highlights

  • Kraken will raise USD 1bn in its first standalone equity raising, implying a valuation of USD 8.65bn.
  • Origin will invest approximately AUD 210m and maintain a 22.7% economic interest in Kraken post-transaction.
  • Origin has waived Australian exclusivity in exchange for additional Kraken equity, enabling broader platform licensing.

Origin Energy Limited (ASX: ORG) has provided an update on a series of executed transactions involving Kraken Technologies Limited, outlining a major equity raising, changes to ownership arrangements and steps toward Kraken’s formal separation from Octopus Energy. The transactions are designed to support Kraken’s independent operations and future growth trajectory ahead of a targeted mid-2026 separation.

Kraken Announces First Standalone Capital Raising

Kraken will undertake its first standalone equity raising, targeting USD 1 billion from a mix of new investors and existing shareholders. The transaction includes participation from a newly signed strategic customer as well as established public crossover investors.

The capital raising provides an implied standalone valuation for Kraken of USD 8.65 billion. This valuation includes USD 150 million in cash retained by Kraken as part of the transaction and represents the first independent market-based valuation of the platform business.

Origin Commits Capital and Retains Economic Exposure

As part of the equity raising process, Origin will invest USD 140 million, equivalent to approximately AUD 210 million. The investment includes participation through a primary equity issue as well as a secondary sale process.

Following completion of the transactions, Origin’s total economic interest in Kraken will remain at 22.7 per cent. This includes a direct equity holding of 19.6 per cent and an indirect interest of 3.1 per cent through its unchanged 22.7 per cent stake in Octopus Energy.

Capital Allocation and Separation Framework

Of the USD 1 billion raised, USD 150 million will be retained within Kraken to support ongoing operations and development. The remaining USD 850 million will be retained by Octopus Energy.

In addition, Octopus Capital and other investors will inject a further AUD 320 million into Octopus Energy. Combined, these funds are expected to be deployed for future growth initiatives and operational requirements across the business.

The transactions provide the legal and financial framework required for the formal separation of Kraken from Octopus Energy, which is anticipated to occur in the 2026 calendar year, subject to regulatory approvals.

Licensing Agreement and Australian Exclusivity Change

Kraken has entered into a licensing agreement with a major global energy retailer, adding more than 10 million customer accounts to its platform. This strategic customer will also participate in the Kraken equity raising.

Separately, Origin has agreed to waive its exclusivity to the Kraken platform in Australia. In exchange, Origin will receive an additional 1.5 per cent equity interest directly in Kraken. Following this change, Kraken will be able to license its platform to other Australian utilities without restriction.

Ownership Structure Post-Transaction

After completion of the transactions, Octopus Energy will retain a 13.7 per cent interest in Kraken as a foundation customer. Other shareholders will hold 66.7 per cent of Kraken, while Origin will maintain its combined direct and indirect exposure.

All arrangements remain subject to relevant regulatory approvals and rulings before taking effect.

ORG shares were trading at AUD 11.330 per share at the time of writing on 30 December 2025.