Hydrogène de France is aiming for 100 million euros for its IPO
Moving from pioneer status to that of world leader in hydrogen-electricity by 2025: this is the very big ambition displayed by the company Hydrogène de France (HDF Energy). Based in Lormont, near Bordeaux, since its creation in 2012, this SME with 25 employees made a name for itself with the announcement at the end of 2019 of the construction of a fuel cell manufacturing plant in Bordeaux Métropole. It has since been retained by the Métropole to take over part of the land vacated by the former Ford Aquitaine Industries, in Blanquefort, against a background of generalized excitement for hydrogen and its applications in France and Europe.
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The core business of Hydrogène de France (HDF Energy) is hydrogen-electricity. The aim is to develop electricity production plants from renewable energy (wind or photovoltaic) associated with storage capacity thanks to hydrogen.
Objective to raise 100 million euros
Profitable since its creation, HDF Energy has generated around 2 million euros in turnover in recent years but now intends to completely change its paradigm and 'ladder. And as it announced exclusively to La Tribune on May 25, the management team has chosen to go public on Euronext to finance its significant capital needs with a relatively small window of opportunity.
"We managed to self-finance to pass several milestones with Ballard, ABB and Atos but, there, if we did not raise funds, we would be eaten! We therefore opted for the stock market to maintain our independence" , clarifies Damien Havard.
With this IPO, HDF Energy wishes to raise 100 million euros and is valued, in pre-operation, around 270 million euros with 10 million shares at an average price of 27 euros. The introduction, led by Bryan, Garnier & Co, results in a public offer in France at an open price and a placement with French and foreign institutions. Initially, 3.7 million new shares are issued in a price range of €22.95 to €31.05 to raise these 100 million euros and, secondly, an option is posed for the transfer of a maximum of 935,000 shares by Damien Havard and 260,000 by Kefren, the historic family office, allowing, if necessary, to raise an additional 32 million euros.
80 million euros in subscription commitments
And to guarantee the credibility of its proposal and its model, HDF Energy, which wishes to multiply its turnover by fifty in five years, has significant subscription commitments to industry benchmarks in the amount of 80 million euros. "These commitments demonstrate the confidence of industrial and financial investors in our activity and our growth model", assures Damien Havard. In detail, the Rubis group has committed 50 million euros. It is a company listed on Euronext Paris with a market capitalization of nearly 4 billion euros at the end of 2020 (SBF 120), specializing in the distribution of energy and bitumen. Rubis, which generates 3.9 billion euros in revenue in 41 countries, is already a partner of HDF Energy in Guyana and Martinique. The operation is backed by a strategic partnership for seven years and Rubis is called upon to collaborate on some thirty other HDF projects, in particular with a priority for five years to invest in project companies.
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To this is added 10 million euros for Teréga Solutions, already a partner in the salt cavern storage project in New Aquitaine and Morocco, but also a stakeholder in the European hydrogen backbone project, 10 million euros for CDC Croissance, a subsidiary of Caisse des dépôts, and 5 million euros for the American fund Heights Capital Management. Finally, 1.5 million euros were committed by individual investors and 3.4 million euros by holders of convertible bonds. The operation announced on June 10 will end on June 22 at the latest to be validated the next day. The remaining 20 million euros will therefore be provided by the public stock market.
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100 million euros in 2025
Regarding the use of the funds raised, Hydrogène de France donated the large sums: 20% for the high-power battery manufacturing plant in Blanquefort , near Bordeaux; 30% for the recruitment of highly qualified profiles and the development of international activity to increase the workforce to around a hundred employees within two years; and 50% to increase HDF's investments in the various project companies.
All of this should enable the Bordeaux company to reach 100 million euros in turnover by 2025 and an Ebitda (1) of 35% thanks to the development of renewstable power plants, the sale of batteries power plants, HyPower plants and, at the margin, the sale of electricity.
The Guyanese power plant expected for 2023
To date, its most advanced project is the Western Guyana Power Plant (CEOG), in Guyana, which has just passed an important milestone. On May 7, the Minister for the Ecological Transition signed the decree relating to the rate of return on fixed capital. This "renewstable" plant plans to produce 50 GWh of photovoltaic solar energy annually, coupled with hydrogen storage via two fuel cells, making it possible to supply continuous and stable electricity, day and night. This investment of 130 million euros, including 20% equity from Meridiam, Sara and HDF Energy, should be started this summer for commissioning in early 2023 and operation which should last 20 to 25 years.
Visual of the CEOG project (credits: HDF Energy)
And the management team of HDF Energy, which has an exclusive worldwide license to use Ballard Power Systems' technology until 2026, is confident in its strengths:
"We are particularly delighted with the signing of this memorandum of understanding aimed at developing hydrogen on our territory but more generally in Europe, thus making it possible to accelerate the energy transition through the play of strategic and judicious alliances" , greets Dominique Mockly, the president of Teréga Solutions, while his counterparts at Rubis are also delighted with the operation: "We are convinced with Damien Havard, founder and majority shareholder of HDF Energy, of the creation of value and the accelerating the development capacity of hydrogen-electricity projects in the countries where Rubis operates and strengthening the collaboration that we have built over the past six years with the HDF Energy group".
(1) Ebitda refers to a company's income before subtracting interest, taxes, depreciation and amortization and provisions on fixed assets.
Pierre Cheminade9 mins
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