Thyssen-Krupp’s hydrogen subsidiary, Nucera, has revealed plans to issue shares at a price of €20 each, aiming to raise €605 million through its initial public offering (IPO).
The IPO is set to reduce Thyssen-Krupp’s stake in Nucera to 50.2%. Nucera specializes in developing technology for electrolysis plants, enabling large-scale production of green hydrogen. With a focus on Europe and North America, Nucera sees significant growth opportunities in the USA, aided by favorable policies such as the Inflation Reduction Act.
The IPO will provide Nucera with the necessary funds to expand its business in the hydrogen sector. The company intends to invest between €150 million and €250 million in research and development by 2026, along with a similar amount in further investments, totaling approximately €500 million. These investments are crucial for Nucera to stay competitive and assert itself globally in the burgeoning green hydrogen market.
By offering shares to new shareholders, Nucera aims to secure additional capital for its expansion plans. The IPO valuation at around €2.53 billion highlights the market’s confidence in the future prospects of Nucera and the potential of green hydrogen as a clean energy solution. The IPO is expected to attract cornerstone investors such as the Saudi state fund PIF, BNP Paribas Energy Transition Fund, and others, further bolstering the company’s financial position.
However, the IPO comes with its share of challenges. The market environment for IPOs remains cautious, as seen with the unsuccessful debut of Ionos, an internet service provider, earlier this year. Despite recent highs on the DAX, investors remain wary of new offerings. Nonetheless, Nucera’s focus on green hydrogen aligns with the global push for sustainable energy solutions, making it an attractive proposition for environmentally conscious investors.
Nucera’s IPO represents a significant step forward in the development of the green hydrogen sector. Green hydrogen, produced through electrolysis using renewable energy sources, has the potential to revolutionize industries such as steel production, transportation, and energy storage, offering a clean alternative to fossil fuels. By investing in research, development, and expansion, Nucera aims to position itself as a key player in the global green hydrogen market.
In conclusion, Thyssen-Krupp’s Nucera subsidiary’s IPO marks an important milestone in the growth of green hydrogen technology. The funds raised through the IPO will facilitate Nucera’s expansion plans and accelerate the development of industrial-scale green hydrogen production. Despite the challenges posed by the market environment, the IPO signifies the increasing interest and investment in sustainable energy solutions. As Nucera advances its research and development efforts, the world moves closer to a future powered by clean and renewable energy.
