United Hydrogen Limited (UHL) has announced that the valuation of its investee H2X has increased from $69.1m to $100m, resulting in an immediate uplift in valuation for UHL’s shareholders who invested in the pre-IPO capital raise. As one of the largest shareholders in H2X, UHL believes that it will deliver significant value in 2023 as H2X heads towards a listing on the London Stock Exchange.
UHL’s pre-IPO placement is still open via VCEX, providing a rare opportunity to invest in a company that has generated $650m in market capitalisation across 11 hydrogen companies, with each starting from a valuation of zero. The share placement will also give investors access to the world’s largest hydrogen conglomerate’s 37 hydrogen companies and projects, including H2X.
Despite the valuation uplift, investors will be able to access UHL at a valuation of only $20m, which has only been attributed to 9 of the 37 companies and projects it holds equity in. UHL believes the share price is extremely conservative given the progress companies like H2X have made since its overall portfolio valuation was validated by independent auditors.
UHL plans to invest the funds raised from the share placement back into its investee companies as part of its strategy to increase its group valuation prior to a planned IPO in the second half of 2023. H2X’s 44% valuation uplift serves as a proof of concept for UHL’s growth strategy, and the Company believes that investing the capital raised back into its group will have a multiplier effect on its overall valuation.
UHL’s equity position will increase in each individual company it invests in, resulting in an immediate uptick in portfolio valuation. The investee companies will use these funds to continue their development, thus increasing their valuation and UHL’s position. UHL will also use the funds to unlock the potential of projects currently valued at zero, which they believe will significantly increase portfolio valuation.
UHL will work with each company to provide the resources required to achieve substantial commercial success and deliver lucrative liquidity events, generating the cash needed to fund growth and pay dividends to shareholders. With a proven track record in generating significant value, the Company believes it is in a strong position to become the world’s first hydrogen unicorn and the market leader in a sector set to be worth US$201b by 2025.
UHL has a strong track record, including founding shareholder, investor, and major shareholder in H2X Global, taking it from a valuation of zero to $100m. H2X is also on track to execute a planned public listing on the London Stock Exchange at the back-end of 2023, which is anticipated to deliver a significant liquidity event. UHL is also a founding partner and investor in Infinite Green, taking it from a valuation of zero to $315m.
UHL has had seven successful exits over the past 18 months, delivering a $23.5m return for shareholders. Given this strong track record, UHL is aiming to generate similar valuation growth across its 37 projects and companies as it gears up for a planned IPO in the second half of 2023.