Hydrogen company Nel raised 1.5 billion NOK

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Hydrogen company Nel has raised 1.5 billion Norwegian kroner in new capital in a private placement, the company wrote in a stock exchange announcement Wednesday evening. The release was announced earlier in the day, right after the exchange closed.

By comparison, the company’s market capitalization is 24.6 billion.

The issue price was set at NOK 15.3, in the book building process where Carnegie and Morgan Stanley were appointed as advisors. There is a 9 percent discount on the closing price of NOK 16.81 on Wednesday.

Neil writes in the report that the funds raised by the company will be used to increase production capacity, to expand the organization in terms of order handling and giving activity, and for general corporate purposes.

“Neill is seeing increased interest and opportunity in the hydrogen industry,” the company wrote, stressing that it more than doubled its list of potential projects to $12 billion in the last quarter of last year alone.

Neil has a tradition not to raise money when we have to, but when we can. We have a lot of money, but we will build more factories and then it makes sense to have a strong balance ready, says outgoing company director Jean-Andre Luc.

Nile

A listed Norwegian company developing technology related to hydrogen infrastructure.
The company’s roots go back to 1927, when the first electrolysis facilities were built at the Norsk Hydro plant in Notodin.
Electrolysis technology was further developed in several rounds, and in 2003 Neil opened the world’s first publicly accessible filling station for hydrogen in Iceland.
In 2014, the first one hundred percent hydrogen company was listed on the Oslo Stock Exchange, and in 2015 it acquired rival H2 Logic.
In 2016 it began building the world’s largest plant for the production of hydrogen plants, and in 2017 it acquired competitor Proton Onsite.
In the same year, Neil concluded a cooperation agreement with the American truck manufacturer Nikola. The following year, the two entered into a contract which meant Neil would supply 448 electrolyzers to Nicola. The contract will secure billions in revenue for Neal.

Inventory until this year

The Nel stake has experienced an enterprising development in 2020, like many other growth stocks and green companies. In 2021, this type of investment is becoming less common, but this year the share has seen a positive development. Since the bottom at the end of January, it has risen more than 50 percent.

The bottom was reached in January after Løkke, who has been with the company since December 2015, announced his departure as CEO earlier that month.

In February, he gave up half of Neil’s shares For 12.9 million kroner To an average price of NOK 12.86 – however, the price has gone up over time by 30 percent.

Løkke explains his February stake sale with the fact that it is impossible to tell when such things will happen, since as a principal and chief internal officer he has only a few windows in a year, preferably in terms of presenting annual results, as he had the opportunity to sell shares in market.

However, Nel’s CEO has no plans to sell his remaining 1 million Nel stock when he eventually changes his role from the CEO’s office to the board of directors.

It lies in the fact that he still has great faith in the company’s plans for the future, not least now that the tragic war in Ukraine has sparked a “European awakening for energy self-sufficiency” as he puts it.

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He points to a press release sent by Neil on March 9, in which the company wrote that it was ready to ramp up production capacity for electrolyzers — to meet the European Union’s growing ambitions for accelerated energy conversion.

At the end of the second quarter of the year, former Q-Free director Håkon Volldal will take over as Nel’s new senior manager. (Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.