(News Bulletin 247) – The water desalination specialist is taking a break on Monday morning, a week after a remarkable arrival on Euronext Growth. With tensions over water resources, Osmosun is evolving on a promising theme.

Osmosun takes a breather after a thundering stock market debut. The title of the water desalination specialist now plunges 10% to 10.88 euros, after starting the day on a high, with a peak at +14.3% around 9:30 a.m. The company closed sharply up 20.74% on Friday, taking its gains to 86% in its first week as a listed company.

Despite this break on Monday morning, the Osmosun share is still moving well above its initial price set at 6.50 euros for its IPO last Monday on Euronext Growth, the compartment dedicated to small and medium-sized enterprises.

Water stress management

It must be said that the company is evolving on a promising theme, that of the treatment of sea or brackish water in order to make it drinkable. Especially since water is an essential resource for life but it is unfortunately not infinitely expandable. Demographic growth and climate change are putting ever-increasing pressure on existing water resources.

Several countries around the world are indeed facing unprecedented heat waves. In China, a heat record was broken this Sunday, while Europe, renowned for its temperate climate, is not spared. Temperatures are panicking around the Mediterranean, with a heat wave expected in the southern quarter of France on Tuesday or Wednesday.

In this context, water stress is increasingly felt. Water stress describes a critical situation in which the available water resources are lower than the demand. Mandarine Gestion recalls that “40% of drinking water should disappear within 30 years on a global scale, due to global warming and pollution”.

The IME (Institution of Mechanical Engineers) asserts that water needs – to meet human food demand – could reach between 10 and 13.5 billion cubic meters per year in 2050, i.e. approximately three times the the amount currently used.

A key know-how

In this context of water scarcity and risk of water shortage, the desalination of seawater has indeed become a preferred and abundant solution since nearly 70% of the planet is covered with salt water. But this process, which has been proven for several decades, is highly energy-intensive and emits a large quantity of greenhouse gases.

And that’s where Osmosun comes in. The company has deployed technology to rid sea or brackish water of salt and other impurities through reverse osmosis. This technology used by most desalination plants in the world consists of filtering the water by pressure, retaining the impurities to allow only the water molecules to pass.

However, the device developed by Osmosun does not require batteries, generally used to store electricity when the sun runs out on overcast days or when night falls. This is a real technological feat for Osmosun, which is the only company in the world to master this patented innovation allowing the units to manage the random variation of the energy available.

The Osmosun group hopes to increase its turnover to more than 20 million euros in 2025 and to 48 million euros by 2027. Last year, the group saw its sales reach 4.6 million euros. The company also aims to improve its profitability over the period and raise its adjusted EBITDA (gross operating income) margin from 4.3% in 2022 to more than 10% in 2025 to reach more than 20%. in 2027.