Ørsted will offer new shares with pre-emptive rights for existing shareholders at a 67% discount to Friday’s closing price, the world’s largest offshore wind developer said on Monday as it seeks to raise $9.4 billion to cover immediate financing needs amid regulatory uncertainties in the U.S.
Ørsted’s shareholders last week approved a proposed $9.4 billion (60 billion Danish crowns) rights issue to raise capital from existing shareholders as challenges for the industry continue to mount.
Ørsted said on Monday in its prospectus for the rights issue that it would offer new shares with pre-emptive rights for existing shareholders between September 19 and October 2, 2025. The subscription price is 66.60 Danish crowns per share, or $10.47, which is a 67% discount on the 200 crowns, or $31.46, at which the company’s shares closed Friday trade in Copenhagen.
The offering will be for 900,816,600 new shares at a subscription price of DKK 66.60 per new share with pre-emptive rights for the existing shareholders of Ørsted A/S at the ratio of 15:7, the Danish offshore wind developer said.
“We’re raising capital to cover immediate financing needs from retaining full ownership of Sunrise Wind, to manage risks from regulatory uncertainty in the US, and to strengthen Ørsted’s capital structure so we can deliver on our growth pipeline and long-term value creation,” president and CEO, Rasmus Errboe, said in a statement.
Earlier this month, Equinor, which holds 10% in Ørsted, said it would take part with $939 million in the rights issue, as the Norwegian energy major signaled “confidence in Ørsted’s underlying business, and the competitiveness of offshore wind in the future energy mix, in selected geographies.”
In a setback in the United States, Ørsted was issued a stop-work order on a nearly completed project by the U.S. Administration.
The Revolution Wind project is 80% complete, with all offshore foundations installed and 45 out of 65 wind turbines installed. The partners in the project sued the U.S. Administration, challenging the stop-work order.
By Tsvetana Paraskova for Oilprice.com
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