(Alliance News) - Atome Energy PLC shares climbed in early dealings on Thursday, as the green hydrogen and ammonia production-focused company made its debut on London's AIM junior market.
The President Energy PLC spin-off raised GBP6 million in its initial public offering with an option for GBP3 million more. Shares were sold in a placing and via PrimaryBid at 80 pence each, giving Atome a market capitalisation of GBP26 million on admission.
Atome shares were trading at 86.25p each early Thursday in London, up 7.8% from the placing price.
Atome said it is the first London Stock Exchange listing focused solely on producing green hydrogen and ammonia, with projects in Iceland and Paraguay.
In Iceland, 75% owned unit Green Fuel ehf is eyeing first hydrogen and ammonia production in 2024. In Paraguay, it is targeting the supply of green renewable power of up to 250 megawatts from Itaipu, a hydroelectric dam near the border of Brazil and Paraguay.
Atome has agreed a deal to place its main production facility adjacent to the dam.
"The locations of Atome's projects in Iceland and Paraguay have been strategically selected for their readily available adequate supply of low-cost stable baseload green energy and significant established domestic-end markets with export potential in the two large multi-national trading zones of the EU and Mercosur countries," the company said.
Mercosur is a South American trading bloc.
President Energy said it retains just shy of a 28% stake in Atome, with other Atome shares distributed directly to President Energy shareholders as a dividend in specie. President said it will given an update on its remaining conventional oil and gas business in the new year, adding that operations are in line with expectations.
President Energy shares were 19% lower at 2.03p each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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