(Adds details, chairperson comment)
COPENHAGEN, May 27 (Reuters) - Green Hydrogen Systems, which makes electrolysers to produce green hydrogen, said on Thursday it plans to raise around 1 billion Danish crowns ($164 million) in an initial public offering (IPO) in Copenhagen.
The Danish company, which has already secured backing from state pension fund ATP, the Danish growth fund, Nordea and Maersk-owner A.P. Moller Holding, plans to use the proceeds for research and development and to ramp up production capacity.
“Green Hydrogen Systems is well-positioned to become a leading supplier of electrolysers for the production of hydrogen based on renewable electricity,” Thyge Boserup, chairperson of Green Hydrogen Systems, said in a statement.
“However, it requires further investments to unfold the full potential of the company, and therefore an IPO is a natural next step,” he said.
New and current shareholders have undertaken to subscribe for shares worth 656 million crowns, valuing the company at around 2 billion crowns.
Green hydrogen is a zero-carbon fuel generated from renewable energy sources. It is an option for heavy industry that cannot convert easily to electricity as part of the transition to greener energy.
The European Union late last year announced a plan to boost investment in green hydrogen capacity to reach 1 million tonnes a year in 2024 - a six-fold increase from the capacity at that point.
Green Hydrogen Systems expects to increase revenue this year more than four-fold to between 40 and 60 million crowns.
The company plans in the coming years to expand capacity at its plant in Denmark to 400 megawatts (MW) per year from 75 MW now.
ABG Sundal Collier, Carnegie Investment Bank and J.P. Morgan will be managing the IPO.
$1 = 6.0997 Danish crowns Reporting by Jacob Gronholt-Pedersen and Tim Barsoe. Editing by Jason Neely and Mark Potter