Thyssenkrupp AG’s hydrogen subsidiary, Nucera, is readying for a significant market move with plans to launch an initial public offering (IPO) aimed at raising as much as €566 million ($615 million). This move comes at a time when the European listings market is proving to be quite challenging for issuers.
Thyssenkrupp, which holds a 66% stake in Nucera, and the other shareholder, Italy’s Industrie De Nora SpA, which owns the remaining 34%, are expected to sell up to €85 million combined. This will only take place if there’s sufficient demand in the Frankfurt listing to place additional shares with investors, as outlined in the companies’ statements. With these projections, the IPO would value Nucera at a substantial €2.7 billion.
Two major investors have shown interest in the offering – Saudi Arabia’s Public Investment Fund may acquire as much as €163 million of the offering, while BNP Paribas Asset Management is planning to buy up to €85 million for its energy transition fund.
Investors will be able to purchase Nucera shares at €19 to €21.50 each, with a final price expected to be disclosed on July 5. The new stock is scheduled to commence trading on July 7.
Despite the IPO, Thyssenkrupp intends to maintain its majority stake in Nucera, while Industrie De Nora has expressed its commitment to continuing its long-standing partnership with Thyssenkrupp and Nucera.
As a key player in the green energy revolution, Nucera specializes in constructing plants that generate hydrogen gas from renewable energy sources like solar and wind. Hydrogen, which transforms into electricity without emitting greenhouse gases when utilized in a fuel cell or burned in a turbine, is also a valuable resource for energy storage.
Nucera’s IPO plans from last year were impeded by surging inflation, increasing interest rates, and volatile markets that made investors and issuers wary. The current IPO market in Europe is attempting to recover from a significant downturn, with issuers facing erratic equity prices. According to Bloomberg data, European companies have only completed $3.5 billion of IPOs this year, marking a 44% decrease from the same period in 2022.
Leading Nucera’s IPO are Citigroup Inc. and Deutsche Bank AG, with Commerzbank AG/Oddo BHF, Societe Generale SA, and UniCredit SpA in cooperation with Kepler Cheuvreux serving as joint book-runners.