Fuel Cell Testing Firm Hydrogenics Sets IPO Terms
Canada's Hydrogenics Corp., whose test stations are used by General Motors Corp., the U.S. Army and others to measure fuel cell performance, set terms yesterday on an initial public offering. Read More
Canada’s Hydrogenics Corp., whose test stations are used by General Motors Corp., the U.S. Army and others to measure fuel cell performance, set terms yesterday on an initial public offering.
The Ontario-based company is offering 7 million common shares in a range of $10-$12 a share, it said in a filing with the U.S. Securities and Exchange Commission.
Hydrogenics, which initially filed to go public at the end of July, has applied for a Nasdaq listing under the symbol “HYGS” and on the Toronto Stock Exchange under “HYG.”
It plans to use the net proceeds from the IPO for research and development, capital expenditures, sales and marketing, potential acquisitions and investments as well as general corporate purposes.
If the 7 million shares are snapped up, underwriters Salomon Smith Barney, CIBC World Markets and BMO Nesbitt Burns have an option to buy 1.05 million more shares.
Once the IPO is completed, Hydrogenics will have 35.5 million common shares outstanding.
The company’s test stations monitor the impact of temperature, pressure and potential contaminants on a fuel cell.
The data are then gathered and used to make fuel cell systems, which produce electricity without combustion through a reaction of hydrogen and oxygen.
The systems are considered an environmentally friendly alternative power source because its main byproducts are heat and water.
Automotive companies, fuel cell developers and others are spending large amounts of capital to develop their own fuel cell programmes, Hydrogenics said, adding, “We believe that test stations will be essential elements of many of these development programs.”
The company has begun developing fuel cell systems for situations that require power regardless of the environment, such as in remote and extreme weather or for military use.
For example, it is working on a system to operate at minus 40 degrees Celsius as well as one that will power a military device that detects chemical and biological agents.
