Octopus Energy has been indicatively valued at £7.2 billion putting it among the UK’s most significant private companies after two shareholders hiked their stakes.
Generation Investment Management and Canada Pension Plan Investment Board have recently spent £300 million in upping their stakes in the UK’s largest electricity supplier, Sky News-cited sources said on Tuesday.
Canada Pension Plan Investment Board now has a 12% stake in Octopus while Generation Investment Management, chaired by former US vice-president Al Gore, now holds 13% of Octopus.
At the price of the latest deal, Octopus is worth £7.2 billion or 16% more than the £6.2 billion figure attributed after a fundraising round five months ago.
Set up nine years ago by Greg Jackson, Octopus now looks to be closing in on attaining a ‘decacorn’ valuation, a term for private companies worth over US$10 billion (almost £8 billion).
Octopus’ rapid growth has been aided by its acquisition of millions of customers from collapsed supplier Bulb Energy and adding more through buying Shell Retail.
Now the UK’s largest electricity supplier after Ofgem data last week said the company had overtaken Centrica PLC (LSE:CNA), it is now also worth more than the British Gas owner, which currently is valued at £6.8 billion.