(Adds valuation)
FRANKFURT, March 8 (Reuters) - German energy infrastructure
firm Friedrich Vorwerk plans an initial public offering (IPO) on
the Frankfurt stock exchange in the first quarter to accelerate
growth in the hydrogen market, its biggest shareholder said on
Monday.
The company, a subsidiary of industrial firm MBB,
aims to raise about 90 million euros ($107 million) from newly
issued shares as well as shares from existing owners.
The listing could value Friedrich Vorwerk at 800 million to
1 billion euros, three sources close to the deal said.
The company declined to comment on the valuation.
MBB said the hydrogen and electricity businesses were
expected to benefit from "substantial investments in light of
the clean energy transition".
Germany has started large-scale efforts to develop 'green'
hydrogen, which is produced from water by electrolysis using
renewable power generated by wind, solar and biomass.
The technology, which is also being pushed by the European
Union, aims to develop alternative fuels for industry, energy,
transport and other sectors as part of the country's
decarbonisaton strategy to meet climate targets.
Vorwerk, in which MBB has a 66% stake, specialises in
pipeline, cable and plant construction for the gas, electricity
and hydrogen markets. It posted earnings before interest, tax,
depreciation and amortization of 58.6 million euros in 2020 on
sales of 291.2 million euros.
Peers such as Neles, Alfa Laval and
Weir trade at 14-15 times their core earnings. If
Vorwerk secured a similar multiple, it would reap a 850 million
euro valuation in a potential IPO.
Vorwerk would remain an owner-managed business, with Chief
Executive Torben Kleinfeldt and MBB retaining a significant
stake in the company, the statement said.
The remaining stakes in Vorwerk are owned by Irene Vorwerk,
widow of the founder and Kleinfeldt.
Vorwerk has a sales pipeline with large potential order
volumes from new underground electricity transport lines
Suedlink, Suedostlink and Corridor A-Nord as well as a number of
planned hydrogen electrolyser plants and pipelines.
Berenberg and Jefferies are organising the deal with the
help of Hauck & Aufhaeuser.
($1 = 0.8424 euros)
(Reporting by Vera Eckert and Arno Schuetze; Editing by Edmund
Blair)
Weir Group (WEIR)
