HydrogenOne Capital Growth Plc (HGEN), a clean hydrogen-dedicated investment fund, targets raising GBP 250 million (USD 346m/EUR 292m) in an initial public offering (IPO) in London.
The company announced today that it intends to admit its shares to the premium segment of the Official List of the Financial Conduct Authority and to trading on London Stock Exchange plc's Main Market. Its plan is to raise the aforementioned sum via a placing, an offer for subscription and an intermediaries offer of ordinary shares at GBP 0.01 apiece.
As a cornerstone investor, INEOS UK E&P Holdings Ltd, part of the world’s third largest chemical company INEOS, has pledged to buy at least 25 million ordinary shares at the issue price. INEOS says it is Europe’s largest producer of hydrogen, with an annual output of around 400,000 tonnes. It operates electrolysers through its unit INOVYN.
“The INEOS investment in HydrogenOne will help to accelerate and diversify INEOS’ existing clean hydrogen strategy. It marks the beginning of another substantial and long-term partnership, opening new windows into the clean hydrogen world for INEOS,” said
HGEN said that its investment adviser, namely HydrogenOne Capital LLP (HOC), considers both the green and blue hydrogen project potential to be “at similar inflection points”. It has identified hydrogen assets with a total value of more than USD 90 billion (EUR 75.8bn) and refers to them as “the investible universe”. Among these, it has identified 36 assets to form an illustrative portfolio of potential investments for the company. In any case, HGEN’s investments will exclude fossil fuel producers.
The investment fund expects to become the first one dedicated to clean hydrogen that is listed in London. It targets a net asset value total return of 10% to 15% per year over the medium to long term, with further upside potential.
A prospectus in connection with the issue is expected to be published shortly. Panmure Gordon (UK) Ltd serves as sponsor, financial adviser and joint bookrunner and Kepler Cheuvreux acts as joint bookrunner in relation to the IPO.
(GBP 1.0 = USD 1.386/EUR 1.167)
(USD 1.0 = EUR 0.842)
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London Stock Exchange. Author: jam_90s. License: Creative Commons, Attribution 2.0 Generic
