(Reuters) - German submarine-to-steel group Thyssenkrupp (ETR:TKAG) on Monday launched the long-awaited listing of its hydrogen division Nucera, targeting proceeds of up to 600 million euros ($646 million).
Here is an overview of Nucera:
BUSINESS
Nucera is a hydrogen company born out of a 66:34 joint venture between Thyssenkrupp and Italian gas grid operator De Nora.
It builds electrolysers needed to produce green hydrogen, a sector currently benefiting from the U.S. Inflation Reduction Act and the European Union's initiatives to support the green energy transition.
The company, based in Dortmund and led by CEO Werner Ponikwar, employs more than 600 people across four continents.
RIVALS
Nucera competes with Norway's Nel, Britain's ITM Power, France's McPhy Energy and U.S.-based Plug Power (NASDAQ:PLUG).
RESULTS
At the end of March, Nucera had an order backlog of 1.4 billion euros. First-half sales grew 74% to 306 million euros, while its operating profit rose 87% to 13.3 million euros.
Nucera recorded annual sales of 383 million euros in the year ended Sept. 30, 2022.
VALUATION
When Thyssenkrupp first said it planned to list Nucera in 2021, analysts valued the business at 3 billion to 6 billion euros. Recent estimates value it between 2 billion and 5 billion euros.
IPO
The listing, run by Citi and Deutsche Bank (ETR:DBKGn), will primarily consist of new shares. Thyssenkrupp also intends to sell some of its own shares, but plans to retain a majority in the company.
The IPO, which was delayed by weak market conditions after Russia's invasion of Ukraine, is expected to be completed before the summer break, depending on market conditions, Thyssenkrupp said.
($1 = 0.9285 euros)