Thyssenkrupp hydrogen IPO plans face market headwinds - sources

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A steep drop in hydrogen shares is likely to hit the valuation of Thyssenkrupp's hydrogen unit Nucera, according to investor and financial sources, which could make it more challenging to list the division in a potential share sale.

Thyssenkrupp has said an IPO of Nucera could happen in the first half of 2022 but the group still needs to make a firm decision in favour of such a move and has left the door open to a partial sale.in a 66-34 split, is the world's top supplier of chlor-alkali membrane technologies needed to produce hydrogen and is also active in alkaline water electrolysis.

"Valuation certainly depends on the market environment. And that's rather fragile at the moment," said Marc Tuengler of DSW, a lobby group that represents Thyssenkrupp's private shareholders. "Time is pressing." In a note published after Nucera's capital markets day in January, analysts at Bank of America attributed a value of 2.3 billion euros for Thyssenkrupp's 66% stake in Nucera, which indicates 3.4 billion euros for the whole business.

A person familiar with the matter said the asset was currently valued at 3 billion to 4 billion euros.In the fiscal year to September, Nucera posted operating profit of 27 million euros, while sales came in at 319 million, a level expected to triple to 900 million to 1 billion by 2025-26. "The multiple that Nucera might have received nine months ago can no longer be reached that easily," Deka's Speich said.Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Bernadette BaumSign up to our investor newsletter to get the latest news and trends in global financial markets.

 

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