“This is the largest holding position over naturally occurring potential hydrogen resources in Australia,” the pitch said.
While hydrogen is new territory for the Australian energy market, the company is taking the route of the age-old Australian resource explorer to fund itself into production: an IPO and reliance on the equity capital markets. It is targeting $25 million at 50¢ per share for a one-third stake in Gold Hydrogen Ltd.
Morgan fund managers and network brokers have started looking into Gold Hydrogen’s claims, including that it will be able to produce hydrogen for 50¢ per kilogram (which is 10 to 20 times cheaper than natural gas, coal and the like ) and to produce 100 percent carbon neutral. Morgans tries to keep investors informed about the natural hydrogen industry as well as the IPO candidate.
Former Foreign Secretary Alexander Downer is Chairman of Gold Hydrogen in South Australia. Getty
Gold Hydrogen will lead potential investors in Brisbane – Morgan’s heartland – on Thursday and has held talks with funds in Melbourne and Sydney this week.
The group has advised potential cornerstone backers that more than 80 percent of the proceeds from the IPO will be used for exploration and development over the next two years. Underwriting and IPO costs are said to be just $1.64 million.
The first stage drilling program is scheduled to begin in the third quarter of next year on the Yorke Peninsula.
While it’s a relatively small business, interest will surge as the energy sector changes and investors look for the next big thing. Last but not least, we’re certain it will be the first of many hydrogen IPOs to cross Street Talk’s desk for years to come.
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