Deal details: thyssenkrupp nucera has successfully conducted an initial public offering (IPO) on the Frankfurt Stock Exchange, issuing 30 million shares at a price of $21.7/unit. This has resulted in an increased market capitalization for the company, reaching ~$2.75bn. Notably, both PIF, the sovereign wealth fund of Saudi Arabia, and BNP Paribas, a leading French banking institution, have secured a significant portion of the shares, representing around 24% of the company. They will now serve as cornerstone investors. Additionally, De Nora, a former joint venture partner of thyssenkrupp nucera, will retain a minimum stake of 26% in the company.
Deal rationale: The raised proceeds will help thyssenkrupp fuel the rapid expansion of its green hydrogen business globally. The unit, which was rebranded in early-2022, identified the IPO as the preferred method to fund the backlog and sustain its growth trajectory. However, unfavorable market conditions due to the Russia-Ukraine war forced the company to delay its plans to go public. With improved market conditions, thyssenkrupp is now seizing the opportunity to drive the expansion of its green hydrogen business on a global scale.
The unit currently has a substantial order backlog of ~$1.5bn, representing contracted orders totaling around 3 GW. With existing partnerships for various green hydrogen projects worldwide, including significant projects in Saudi Arabia, Sweden, and the Netherlands, the company is well positioned for growth. It will continue to focus on expanding its presence in key markets such as the US and Europe, leveraging favorable government policies such as the Inflation Reduction Act (IRA) and RePower EU. The company has set ambitious sales targets of approximately $670-780mn for the upcoming fiscal year 2023/24, reflecting its confidence in meeting the increasing demand for green hydrogen solutions.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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