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(Bloomberg) — Orsted A/S plans to sell new shares at a 67% discount as the offshore wind developer works to rebuild investor confidence after a bet on the US market went wrong.
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The success of the 60 billion Danish kroner ($9.4 billion) rights issue — the biggest for a European energy company in over a decade — is critical for Orsted to be able to finally turn the page on a crisis that has lasted several years. It’s a test of whether investors believe the business of building offshore wind farms has a chance to return to growth and profitability or if it’s time to cut their losses.
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The shares will be issued at 66.6 kroner, compared with a closing price of 200.3 kroner on Friday, according to a prospectus published Monday morning. The rights offering will open Sept. 19, Orsted said.
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How the stock reacts this week will be key in gauging how many investors are subscribing. The company’s two biggest shareholders, the Danish state and Equinor ASA, have already said they will back the offering. They collectively own about 60% of the company.
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Orsted’s shares plunged by a third after last month’s announcement of the rights issue. Less than two weeks later, the Trump administration ordered the company to stop construction on an almost completed wind farm off the coast of Rhode Island. The directive added an unprecedented level of uncertainty for Orsted’s two major US projects, with the bulk of its fund raising set to go to building the Sunrise Wind project off the coast of New York.
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