De Nora was founded in 1923 and specializes in water treatment technologies and electrodes.
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The CEO of electrode maker Industrie De Nora says he is “not afraid” about the current turmoil in the market as it challenges its IPO this week.
The initial public offering was priced at 13.50 euros per share on Tuesday, valuing the Italian company at 2.723 billion euros, or $2.88 billion.
“It was the right time for us, we have a great stock story, so for us…it’s the beginning of a new journey, and we’re not afraid of the current turmoil in the market,” CEO Paulo Delacha told CNBC’s Giuliana Tattlebaum. “We have an industrial plan that we are implementing.”
The company is set to begin trading in Euronext Milan on Thursday, in what would be the first major initial public offering in Europe since the start of the war in Ukraine.
This comes at a volatile time for the markets, with the pan-European Eurostoxx 600 Index down more than 14% over the year so far. Traders are reacting to both the Ukraine conflict and its global repercussions, as well as the more aggressive rate hike policy by the US Federal Reserve and other central banks around the world.
De Nora, headquartered in Milan, was founded in 1923 and specializes in water treatment technologies and electrodes.
One area in which the company is looking to make a footprint is the hydrogen sector, and is focusing on technologies related to the production of so-called “green” hydrogen.
Hydrogen can be produced in several ways. One method uses electrolysis, with an electric current splitting water into oxygen and hydrogen.
If the electricity used in this process comes from a renewable source such as wind or solar, some call it “green” or “renewable” hydrogen.
Today, the vast majority of hydrogen generation is based on fossil fuels, but de Nora Delacha was optimistic about the prospects for green cucumbers.
Green hydrogen has been viewed as “something that can achieve a certain competitiveness in the future,” he said, before saying that change was coming.
“We have to say that because of the sudden increase in natural gas [price]Green hydrogen is competitive now.”
Dellacha’s comments come at a time when a number of major companies are trying to find a way to lower the costs of producing green hydrogen and make the sector competitive.
Last week, Siemens Energy and Air Liquide announced plans to create a joint venture focused on the production of an “industrial scale renewable hydrogen electrolyzer in Europe”.
June also saw oil and gas giant BP announce its agreement to acquire a 40.5% stake in Asian Renewable Energy Hub, a mega project planned in Australia.
BP said in a statement that it will become the operator of the project, adding that it has “the potential to be one of the world’s largest renewable energy and green hydrogen centers”.