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Summary
- Hydrogen fuel cell manufacturer Loop Energy Inc (TSX:LPEN) debuted on the Toronto Stock Exchange (TSX) on Thursday, February 25.
- The Burnaby-based company raised gross proceeds of about C$ 100 million in its IPO.
- On its first day on the stock markets, the debutant stock hit a day high of C$ 17.44 to register a jump of about nine per cent.
Loop Energy Inc (TSX:LPEN), a hydrogen fuel cell manufacturer based in British Columbia’s Burnaby city, joined the big family of Toronto Stock Exchange (TSX) on Thursday, February 25.
Following its initial public offering (IPO) that saw a total of 6.25 million shares get sold at a price of C$ 16 apiece, the company raised gross proceeds of about C$ 100 million.
Let’s dive in to find out Loop Energy’s IPO details.
Loop Energy Inc (TSX:LPEN)
Current Stock Price: C$ 16
On its first day on the stock markets, the debutant stock hit a day high of C$ 17.44 to register a jump of about nine per cent. The scrips finally closed the trading day back at its IPO price level of C$ 16.
As per the TMX data, Loop Energy currently holds a market cap of about C$ 537 million.
The Burnaby-based firm revealed in its filings that its IPO procedures were overseen by a host of underwriters headed by National Bank Financial Inc (TSX:NA), including CIBC World Markets, Canaccord Genuity, Raymond James and Cormark Securities. Toronto-based business law firm Fasken Martineau DuMoulin LLP functioned as the company’s legal counsel, while KPMG LLP acted as the auditors.
©Kalkine Group 2020
Canada’s Hydrogen Power Plans
Canada has been working on expanding its hydrogen power production capacity for a while now, with the Trudeau government aiming at making the country a top global producer.
Loop Energy, as noted in its prospectus, also believes that the market for hydrogen fuel cell manufacture is projected to expand to a size of $50 billion by year 2030.
British Columbia, where Loop Energy is headquartered, happens to be where Canada’s first public hydrogen fueling station was established and currently has three of those operating. The province also holds the country’s largest hydrogen fueling network, as per its official website.
Loop Energy’s IPO prospectus pointed that after starting at zero in December-end 2019, the firm’s order book expanded to a size of C$ 16.4 million by January-end 2021. Its partnership agreements included major names in the original equipment manufacturing landscape, including French engineering firm Gaussin SA.
