(Bloomberg) -- Thyssenkrupp AG plans to launch a long-awaited initial public offering of its Nucera hydrogen unit next month, which could be valued at about €4 billion ($4.3 billion), people with knowledge of the matter said.

The German engineering group is looking to offer at least €500 million worth of new Nucera shares in Frankfurt, according to the people. The additional sale of some of Thyssenkrupp’s holding could increase the total offer size to as much as €750 million, they said, asking not to be identified discussing confidential information.

That would make it the largest IPO in Europe this year, data compiled by Bloomberg show. Thyssenkrupp is expected to retain a majority stake in Nucera, the people said.

Citigroup Inc. and Deutsche Bank AG are leading the IPO, with Commerzbank AG, UniCredit SpA and Societe Generale SA working as joint bookrunners, the people said. Deliberations are ongoing and no final decisions on the size or timing of the listing have been made, the people said. 

Representatives for Citigroup, Deutsche Bank, Commerzbank, Societe Generale, Thyssenkrupp and UniCredit declined to comment.

Nucera builds plants that generate hydrogen gas from renewable sources of energy such as solar and wind. Hydrogen converts to electricity without greenhouse gas emissions when fed through a fuel cell or burned in a turbine, and can also be used for energy storage.

The unit planned to list last year but has been waiting in the sidelines due to tough conditions for IPOs over the past 18 months. Heightened inflation, rising interest rates and increasingly volatile markets have spooked investors and issuers alike.

--With assistance from William Wilkes.

©2023 Bloomberg L.P.