Exclusive: Italian De Nora set to announce IPO plans next week

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MILAN, June 5 (Reuters) – Italian Industrie De Nora, which makes components to produce green hydrogen, is due to announce plans for an IPO in Milan next week, three people familiar with the matter said on Sunday. .

According to the sources, De Nora aims to complete the share offering in June, in what would be the first major IPO in Milan since Russia invaded Ukraine on February 24.

Controlled by the De Nora family with a 64% stake, the remaining shares being held by the Italian Snam (SRG.MI), the group achieved a turnover of 616 million euros (660.23 million dollars) with a base profit of 127 million euros in 2021.

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Two of the people said the company would introduce a minority stake, with the De Nora family and Snam remaining shareholders.

De Nora is confident he can still hit the year-to-date valuation target, despite market volatility, one of the sources said.

In February, a person familiar with the matter told Reuters the deal could value the group up to 5 billion euros, including debt.

The war, which has clouded prospects for economic growth and pushed up inflation and interest rates, prompted many companies to suspend listing plans.

According to EY, the global IPO market generated $54.4 billion in first-quarter proceeds, down 51% from a year earlier, despite January being the highest month to open. strong for two decades.

But one of the sources indicated that investors had shown interest in the Italian group in recent weeks because its activity is linked to green hydrogen, which is obtained by separating it from water thanks to an electrolysis process powered by renewable energy.

Hydrogen production is seen as playing an important role in attempts to reduce greenhouse gas emissions, and demand is expected to rise sharply in the coming years.

As Europe strives to reduce its dependence on Russian oil and gas without deviating from its trajectory of reducing carbon emissions, alternative and environmentally friendly energy sources are attracting interest. growing from investors.

The sources warned that the company’s plan could still change due to volatility in the financial markets.

($1 = 0.9330 euros)

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Reporting by Francesca Landini, Elvira Pollina, additional reporting by Valentina Za Editing by Tomasz Janowski

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