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Thyssenkrupp’s hydrogen business expects IPO proceeds to reach $ 687 million

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FRANKFURT / DUESSELDORF () -Thyssenkrupp’s electrolysis business aims to generate up to € 600 million ($ 687 million) this year through the sale of new shares in a possible public offering, which will provide money to the emerging hydrogen sector that supplies the equipment. sewing.

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.

The potential revenue of 500-600 million would have to sell about 10-20 per cent of the stock, based on an estimate range of € 3 billion to € 6 billion that analysts have put into the unit, which could be registered in the spring.

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.

“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,” said Krude, who has led the department since October 2016.

In the fiscal year ended in September, Thyssenkrupp Nucera had pre-interest and pre-tax earnings of € 27 million and sales of € 319 million, which is expected to be between € 900 million and € 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.

Europe, especially Germany, wants to be a world leader in green hydrogen produced from renewable sources and free of carbon, which will reduce emissions and decarbonize the economy.

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)

Reports by Christoph Staits of Frankfurt and Tom Kakenhoff of Dusseldorf, edited by Matthew Lewis and Jane Merriman

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