FRANKFURT (dpa-AFX) - Hopes of an initial public offering (IPO) of the hydrogen division Nucera in June gave strong upward impetus to Thyssenkrupp shares on Wednesday. In the afternoon, shares in the Essen-based industrial and steel company rose 6.5 percent to 6.824 euros. This made them the best performer in the MDax. The mid-cap index recorded moderate gains.

At just under 7 euros, thyssenkrupp shares were temporarily back at the level of April 24 before the surprise announcement at the time that Group CEO Martina Merz would prematurely terminate her contract. Since then, the shares have struggled to recover, although they are still up nearly 20 percent year to date.

Thyssenkrupp, which holds 66 percent of Nucera, is now planning the Borsengang for next month, news agency Bloomberg reported, citing informed circles. A valuation of the entire joint venture of around 4 billion euros is being sought, it said. Depending on interest, shares worth 500 million and up to 750 million euros could be issued, the sources said.

Morgan Stanley analyst Alain Gabriel is skeptical about such an IPO, even though the Bloomberg report on it "has been well received by the market and the focus of the investment story is being returned to the sum of the parts." But uncertainty about the timing of such a borsengang is high, not least given heightened macroeconomic concerns, Gabriel wrote. And even if it were to happen, the conglomerate structure and potential conglomerate discount would remain, as Thyssenkrupp shareholders would not receive Nucera shares directly. Moreover, the proceeds from Nucera's Borsengang are expected to flow back there to finance the hydrogen company's growth ambitions.

Market observer Andreas Lipkow also remains cautious: "On the one hand, Thyssenkrupp would receive further liquidity from a possible sale of the hydrogen division and could continue its restructuring course. On the other hand, however, many market participants had been betting that Thyssenkrupp could transform itself as an industrial services provider in this hydrogen segment and would rather dispose of the steel business."/ck/la/ngu