Shares in Clean Power Hydrogen PLC rose more than 30% as they started trading on London’s AIM market on Wednesday, following an initial public offering that raised less than first hoped.

CPH2 is a green hydrogen technology and manufacturing company based in Doncaster, England. It has developed a proprietary membrane-free electrolyser. The company will use the IPO funds for strengthening its financial position, as well as building out its manufacturing operation in Doncaster.

At the IPO price of 45 pence per share, CPH2 had a market capitalisation of £119.4 million, with 265.4 million shares issued overall. Though CPH2 called the offering oversubscribed, the £30.5 million raised in the IPO fell short of the company’s £50 million target announced back in January.

‘Today’s listing and over-subscribed placing, delivered in difficult stock market conditions, is an important milestone for CPH2 and will assist the rapid growth of the group,’ said Chief Executive Officer Jon Duffy.

‘The group is now in a position to continue significant investment into its research and development capacity and enhance our intellectual property position whilst establishing a stock of completed units to deliver the substantial and continually growing opportunity pipeline.’

Shares in CPH2 were trading at 58.99 pence each in London on Wednesday late morning, 31% higher than the 45p IPO price, having previously hit a high of 69p.

Among its investors was Primorus Investments PLC, which subscribed for 2.2 million shares worth £1.0 million.

Copyright 2022 Alliance News Limited. All Rights Reserved.