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Thyssenkrupp expects $ 687 million in IPO cash, betting on hydrogen scandal

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FRANKFURT / DYUSSELDORF () -Thyssenkrupp electrolysis business aims to earn up to € 600 million ($ 687 million) this year by selling new shares in a possible public offering, and the hydrogen sector it supplies is worth $ 130 billion.

FILE PHOTO: The Thyssenkrupp AG logo is depicted at the company’s headquarters in Essen, Germany, on November 21, 2018. / Thilo Shmuelgen / File Photo

Thyssenkrupp plans to keep a majority in the business called Thyssenkrupp Nucera after any IPO and aims to maintain its existing share ratio with its Italian co-author De Nora, said Volkmar Dinstuhl, head of the conglomerate’s Multi Tracks division.

This means up to 25% free swimming.

Nucera electrolysis technology uses power to split water into oxygen and hydrogen, which allows decarbonization of CO2 heavy industries, including steel production, refining, and fertilizers using “green” hydrogen.

Hydrogen production is benefiting from Europe’s efforts to become a world leader in this technology, which will play a major role in reducing emissions and decarbonizing economies, according to Precedence Research, which is expected to reach $ 130 billion in the market by 2020. can be trusted.

The potential IPO revenue of 500-600 million is due to the sale of about 10-20% of shares based on the valuation range of 3 billion to 6 billion euros, which is set by analysts in the spring on the possible division. settings are coming.

Thyssenkrupp Nucera is the world’s largest supplier of chlorine-alkaline membrane technology needed to produce hydrogen, competing with Japan’s Asahi Kasei, China’s Bluestar Beijing Chemical Machinery and Britain’s Ineos chemical group.

It is also active in alkaline water electrolysis, a key requirement for the production of hydrogen produced from renewable energy, pitting it against Norway’s Nel ASA, the UK’s ITM Power and France’s McPhy Energy SAS.

GREAT DEMAND

“Demand is huge. We want to take this opportunity, ”said Thyssenkrupp Nucera CEO Denis Krude on Thursday in front of capital markets, where investors are learning more about the business for the first time.

“We are a technological leader in electrolysis and have been in business for decades,” added Krude, who has led the department since October 2016.

So far, green hydrogen has been much more expensive than versions produced using fossil fuels, including the dominant “gray” hydrogen, which relies on natural gas, but rising gas prices have begun to change the economy.

In the fiscal year to the end of September, Thyssenkrupp Nucera had pre-interest and pre-tax earnings of € 27 million and sales of € 319 million, a figure that is expected to triple from 900 million to 1 billion by 2025/26.

The potential proceeds from the sale of the new shares will not affect the sale of existing shares by Thyssenkrupp and De Nora owners, who own Thyssenkrupp Nucera in a 66/34 split.

Thyssenkrupp, who first put forward the idea of ​​IPOing his hydrogen business in May last year, declined to say how much would be sold as part of a secondary bid if it went public.

“The market has tremendous potential,” Krude and Nucera said, adding that between 2024/25, it will invest between $ 200 million and $ 300 million, of which $ 150 million to $ 200 million will be spent on strategic actions, including cooperation, manufacturing and smaller deals.

Thyssenkrupp, which manufactures everything from steel and submarines to auto parts and fertilizer plants, sees the IPO as the preferred option for Nucera, but hasn’t made a final decision.

“The most important thing in a possible IPO for the Thyssenkrupp Group is what is called value crystallization,” Dinstuhl said.

(1 dollar = 0.8738 euros)

Interviews by Christoph Steitz in Frankfurt and Tom Kakenhoff in Dusseldorf; Edited by Matthew Lewis and Jane Merriman

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