Thyssenkrupp launches hydrogen unit IPO in green push

July 8, 2023

FRANKFURT, GERMANY (AFP) – German industrial giant Thyssenkrupp launched the IPO of its hydrogen unit Nucera yesterday, one of the biggest European market floatations this year as interest grows in the shift to green technologies.

As countries around the world look at ways to reduce carbon emissions to help meet climate targets, hydrogen has increasingly come into focus as an alternative to fossil fuels.

Nucera produces electrolysers, which can be used to manufacture green hydrogen made using electricity obtained through renewable energy sources such as solar or wind.

Its shares started trading at EUR20.20 on the Frankfurt stock exchange, slightly above the introduction price set for the stock, valuing the company at about EUR2.5 billion.

Nucera CEO Werner Ponikwar, speaking at the stock market before trading began, hailed the IPO as a “great achievement”.

He said the company aimed to “support our customers on their way to climate neutrality… thereby shaping the new era of sustainable energy.

“We are well on our way to becoming one of the leading green hydrogen companies.”The Stock Exchange in Frankfurt am Main, western Germany. PHOTO: AFP

Friday’s IPO was the second largest in Europe this year, behind Italian gambling firm Lottomatica’s listing in Milan.

Nucera has described the floatation as the largest ever hydrogen listing, and Thyssenkrupp hopes to raise around EUR600 million from the share offering.

The proceeds from the Frankfurt listing will be used to support “the strong growth of Thyssenkrupp Nucera’s alkaline water electrolysis (AWE) business”, the group said previously.

Almost a quarter of the shares in Nucera were put up for sale, while Thyssenkrupp will keep its majority stake in the unit.

Nucera is a joint venture between Thyssenkrupp and Italian company Industrie De Nora. De Nora currently holds 34 per cent of the Nucera subsidiary.

CMC Markets analyst Konstantin Oldenburger said growth at Nucera was expected to take off in the coming years.

The company was a “beacon of hope for both Thyssenkrupp itself and the entire hydrogen sector in Germany”, he said.

But he also warned Nucera was “not yet profitable and shareholders will probably have to wait along time before sustainable profits materialise”.

Thyssenkrupp is one of German’s leading industrial groups, making everything from steel to submarines. But it has in recent years been battling financial problems and a crisis over its future direction.

Its chief executive Martina Merz announced in April she was stepping down after leading a major restructuring of the group. She was replaced by Miguel Angel Lopez Borrego, previously CEO of German engineering group Norma.