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(Bloomberg) — Orsted A/S’s Chief Financial Officer Trond Westlie said the muted market reaction to the pricing of the wind power firm’s $9.4 billion rights offering was a positive sign for the share sale.
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The company’s shares were down just 1.8% as of 1:23 p.m. in Copenhagen, after dropping by a third following the announcement last month that Orsted would conduct the biggest rights issue for a European energy company in over a decade.
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The resilience of the shares, which have been buffeted in recent months, is a crucial indicator of investor interest in the rights offering that’s set to open later this week and complete in early October. Earlier Monday, Orsted said it would sell shares for 66.6 kroner, 67% below the last close and a discount of 39% to the theoretical ex-rights price, a measure used to evaluate the company’s value after the addition of the new shares.
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“We’re happy to see the reaction,” Westlie said in an interview late Monday morning. “The share price today is slightly less, but not significantly less. That’s a good indication for the rights issue going forward.”
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Orsted launched the share sale after the Trump administration made it impossible for the company to sell a stake in a wind farm it’s building off the coast of New York, leaving a hole in its finances. But less than two weeks after announcing the capital raise, it received a stop work order on its Revolution Wind project, a nearly complete wind farm its building off the coast of Rhode Island.
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That added a new level of uncertainty to the firm’s outlook, but Orsted’s biggest shareholders — the Danish state and Equinor ASA — have already said they will back the offering.
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“Our goal is to get back to work on Revolution Wind as soon as possible,” Westlie said. “And we work in multiple tracks to make that happen.”
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