European green hydrogen manufacturer Lhyfe returns to the Initial Public Offering (IPO) scene in Europe
In a significant move for the green hydrogen industry, Lhyfe, a Nantes-based green hydrogen producer, raised 110 million euros via its Initial Public Offering (IPO) in May 2022. The IPO was managed by Crédit Agricole CIB's Strategic Equity Capital Markets (SECM) team, marking the third Hydrogen IPO managed by their teams in less than one year.
Laurent Danino, Executive Director of Strategic Equity Capital Markets at CIB, attributes Lhyfe's success to intensive preparation. Lhyfe prepared for its successful Euronext listing in a highly volatile market by securing significant capital increases, including multi-million euro fundraisings supported by key investors and strategic partners, obtaining substantial subsidies to expand green hydrogen production capacity, and emphasizing rapid scaling with ambitious projects and partnerships to attract strong investor interest.
The decision to move forward with the IPO despite a peak in volatility over the past 18 months was made possible by the secured structure at launch with both industrial and financial cornerstone investors. This strategic move provided a strong foundation for the IPO, which was also marked by the quality of Lhyfe's track record.
The quality of Lhyfe's operations appealed to investors from the first meetings. Lhyfe produces renewable hydrogen via water electrolysis and supplies it by connecting to renewable energy sources. The company operates in a sector that is crucial for achieving net zero goals by 2050.
Sybille Grandgeorge, Executive Director of Power and Renewables at CIB, highlights the strong foundations of their sector-based approach, offering growth companies in the energy transition business dual expertise, combining equity and new energies.
Lhyfe's IPO follows those of HDF Energy and Haffner Energy, also managed by CIB's teams. With three Hydrogen IPOs in less than one year, CIB's sector-based approach has played a significant role in the success of these companies.
Lhyfe aims to become Europe's leading independent green hydrogen producer. The company has an extensive portfolio of 93 identified projects. The IPO market's reopening in the current environment, marked by the crisis in Ukraine and higher risk aversion, was a key factor for Lhyfe's IPO.
Lhyfe is part of the French Tech Green 20, a state-sponsored program promoting tech champions for ecological transition. The recognition as a key driver for decarbonizing economies further underscores the importance of the green hydrogen sector.
In conclusion, Lhyfe's successful IPO is a testament to the potential of the green hydrogen industry and the strategic approach of companies like Lhyfe and their partners in navigating the volatile market conditions. As production costs for green hydrogen become increasingly competitive, we can expect to see more companies following in Lhyfe's footsteps.
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