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HydrogenOne trust ‘creeps over the line’ to raise £107m

Biotech trusts top performance charts in February

HydrogenOne Capital Growth (HGEN), the first dedicated trust to clean hydrogen, has raised £107.35m through its placing, with INEOS Energy providing 23% of that.

By Kathleen Gallagher, Investment Week, 28 July 2021 • 1 min read

It expects the net proceeds of the issue to be £105.2m and the shares will be issued at 100 pence per share.

The trust was targeting a £250m fundraising. When announced, INEOS Energy, the world’s third largest chemical company committed to purchase 25 million ordinary shares, which would have represented 10% of the overall fundraising.

Given the lower fundraising, the chemical company’s commitment represents 23% of the overall fundraising…

Simon Hogan, chairman of the company, said: “We welcome our new shareholders, and look forward to life as a listed fund.

Laith Khalaf, financial analyst at AJ Bell said the trust “just crept over the line” in terms of meeting its minimum raise of £100m…

“The funding gap highlights the difficulty providers are having launching investment trusts in certain areas, even those as hot as clean energy, because investors aren’t willing to take the leap of faith that the trusts will start trading on a premium when they launch on the market,” he said.

Jayna Rana, analyst at QuotedData agreed that the figure was “disappointing”. “That being said, if it can get the money invested quickly and values rise, it has a good change of growing,” she added.

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