(Alliance News) - Shares in Hydrogen Utopia International PLC nearly doubled in price in their first day of trading on Aquis Stock Exchange on Thursday, amid growing public awareness of the environmental threat posed by plastic pollution and the burning fossil fuels.
The London-based company aims to turn non-recyclable mixed plastic waste into carbon-free fuels such as syngas, hydrogen and electricity, or alternatively into new materials or distributed renewable heat.
Hydrogen Utopia has an exclusive license in Poland, Greece and Hungary for the DMG technology of AIM-listed Powerhouse Energy Group PLC. DMG is Powerhouse's process technology to turn waste plastic, old tyres and other waste into syngas.
Hydrogen Utopia raised GBP3.0 million gross in its initial public offering, as Novum Securities Ltd placed 40.0 million shares at 7.5 pence each. At the IPO price, Hydrogen Utopia had a market capitalisation of GBP28.8 million.
However, the stock leapt in initial dealings on AQSE, quoted 14.13 pence Thursday afternoon, up 88% from the IPO price, suggesting a new equity value of GBP54 million.
Company executives were bullish and also talked about the Hydrogen Utopia's wider "mission".
"We are pioneering the use of technology to turn non-recyclable waste plastics into hydrogen - addressing the major environmental threat posed by waste plastic and providing alternative energy sources which are not dependent upon the use of coal, natural gas, oil and fossil fuel derived electricity," says Executive Chair Guy Peters.
The company was started 15 months ago by Chief Executive Officer Aleksandra Binkowska, who says: "HUI's mission from the very beginning was to free our society from plastic waste in an ecologically friendly and economical manner."
Hydrogen Utopia will use the cash raised from its IPO for the costs of building a HUI facility and to pay Powerhouse for the technology license.
Hydrogen Utopia had paid Powerhouse a EUR125,000 deposit, with another EUR325,000 due at the end of 2021. A further EUR300,000 is due in a year's time, and Powerhouse also will receive ongoing royalties and license fees.
The deal with Hydrogen Utopia was first announced in June, with more details provided by Powerhouse back in September, so the success of Hydrogen Utopia's debut didn't rub off on Powerhouse shares. They were down 5.4% at 3.98p on Thursday afternoon and are down 54% in the past 12 months.
By Tom Waite; thomaslwaite@alliancenews.com
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Hydrogen Utopia (HUI)