Orsted sets 67% discount for $9.4bn rights issue

Renewable energy trailblazer raising capital to fund US projects

Danish offshore wind developer Orsted said on Monday it priced its $9.42bn (€8bn) rights issue at 66.6 crowns (€8.90) per share, representing a 66.7% discount to the stock's closing price on Friday.

Danish offshore wind developer Orsted said on Monday it priced its $9.42bn (€8bn) rights issue at 66.6 crowns (€8.90) per share, representing a 66.7% discount to the stock's closing price on Friday.

Earlier this month, Orsted won shareholder approval for the capital raise, which it needs to help fund US projects thrown into uncertainty by US president Donald Trump's opposition to the renewable energy source.

"Today ...we're initiating a rights issue, through which we intend to raise capital to cover the additional funding requirement related to Sunrise Wind and create a robust financial foundation for Orsted to realise the potential of our business," it said in a statement.

The rights issue is critical for Orsted's future. The Danish state-controlled firm is a trailblazer in offshore wind but is struggling to stave off a potentially crippling credit rating downgrade.

Orsted, previously an oil producer under the name DONG Energy, increased its market value five-fold between its 2016 IPO and 2021. But supply chain disruptions, surging interest rates, project delays, and US president Donald Trump's anti-wind policies have battered the offshore wind sector, sending Orsted's share price tumbling by 85% from its 2021 peak.

In Ireland, Orsted has invested €800m and is headquartered in Cork, with almost 30 wind farms in operation or development, along with two solar farms.

Reuters