Infinite Green Energy plans up to AUD $150m IPO in 2H23 – CEO

Infinite Green Energy, an Australian green hydrogen company, plans to raise AUD $120m to AUD $150m (USD 102.3m) via an initial public offering (IPO) in 2H23, CEO Stephen Gauld said.

The Perth-based company, which is developing renewable hydrogen projects and was previously known as Infinite Blue Energy, is currently owned by high net-worth individuals and some institutional investors, he noted. The CEO would not comment on which bourse the company plans to list on yet, or how much of a stake will be floated in the IPO.

The company initially planned to IPO in the later part of 2022, but the market was not right then, Gauld said, adding that the company was also advancing its partnership with Samsung C&T [KRX:028260].

Infinite Green Energy announced last week that it has entered a binding memorandum of understanding (MoU) with Samsung C&T to develop and build the MEG HP1 hydrogen plant in Western Australia (WA). The Samsung deal will fund part of Stage 1 of the project, which is expected to cost AUD $110m, Gauld said.

The company was in no rush to start the IPO process as it has been organically progressing its flagship Arrowsmith hydrogen project near Dongara, WA over the past year, he said. It also acquired Northam Solar Farm earlier this month and will take advantage of the existing power purchase agreement (PPA), with existing contracts bringing instant revenue to the company and adding further value to the company’s planned IPO, he said.

“The more that we progress at Arrowsmith and Northam, get the offtakes done and the strategic partners, it just adds so much more value to the company,” Gauld said.

Prior to the IPO, the company is currently raising AUD $3m to provide AUD $0.5m to cover the IPO cost, with the rest of the proceeds to fund further work at Arrowsmith, design at Northam and working capital, he said.

Chloé Argyle of éthica capital, who is managing the capital raising, said that the company is looking to issue $1.5m new ordinary shares at AUD 2, with oversubscriptions at its discretion.

The AUD $3m capital raising would give the company an indicative pre-money value of AUD $314.5m, according to Argyle.

Separately, the company is now running a tendering process to pick a financial advisor for the debt and equity funding for its Northam Solar and Arrowsmith Green Hydrogen projects, Gauld said, without elaborating on the potential deal size.

New Zealand, Italian projects Infinite Green Energy also intends to raise further capital this year for its green hydrogen projects in Italy and New Zealand, Gauld said. It has been developing the Valle Peligna Green Hydrogen Project in central Italy and it also has a project at the Port of Taranaki in New Zealand.

The company is already in discussions with potential equity partners at these projects, he said. Potential equity partners for these projects are expected to come from countries that are traditional buyers of global LNG, he said.

It expects to retain around 30% or 40% in both its New Zealand and Italian green hydrogen projects, with the rest to be owned by equity partners, Gauld said.

by James Arbuthnott in Sydney