German firm Friedrich Vorwerk plans IPO to expand in hydrogen market

FRANKFURT (Reuters) – German vitality infrastructure business Friedrich Vorwerk strategies an first community providing (IPO) on the Frankfurt inventory exchange in the to start with quarter to accelerate development in the hydrogen industry, its major shareholder stated on Monday.

The organization, a subsidiary of industrial business MBB, aims to increase about 90 million euros ($107 million) from newly issued shares as perfectly as shares from current proprietors.

The listing could price Friedrich Vorwerk at 800 million to 1 billion euros, three resources close to the offer mentioned.

The corporation declined to comment on the valuation.

MBB mentioned the hydrogen and electrical power enterprises had been anticipated to advantage from “substantial investments in light of the clean power transition”.

Germany has started massive-scale initiatives to acquire ‘green’ hydrogen, which is created from water by electrolysis working with renewable energy generated by wind, solar and biomass.

The technological know-how, which is also being pushed by the European Union, aims to establish alternate fuels for industry, electricity, transportation and other sectors as part of the country’s decarbonisaton system to meet up with climate targets.

Vorwerk, in which MBB has a 66% stake, specialises in pipeline, cable and plant building for the gasoline, electric power and hydrogen marketplaces. It posted earnings just before desire, tax, depreciation and amortization of 58.6 million euros in 2020 on profits of 291.2 million euros.

Peers such as Neles, Alfa Laval and Weir trade at 14-15 moments their main earnings. If Vorwerk secured a identical several, it would reap a 850 million euro valuation in a prospective IPO.

Vorwerk would continue to be an owner-managed company, with Main Executive Torben Kleinfeldt and MBB retaining a significant stake in the business, the assertion reported.

The remaining stakes in Vorwerk are owned by Irene Vorwerk, widow of the founder and Kleinfeldt.

Vorwerk has a sales pipeline with big potential order volumes from new underground electrical power transport traces Suedlink, Suedostlink and Corridor A-Nord as well as a variety of planned hydrogen electrolyser crops and pipelines.

Berenberg and Jefferies are organising the deal with the aid of Hauck & Aufhaeuser.

($1 = .8424 euros)