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Investing.com -- Orsted said on Monday it has set the price of its $9.42 billion rights issue at 66.6 Danish crowns ($10.46) per share, a 66.7% discount to Friday’s closing price.
The Danish offshore wind developer secured shareholder backing for the capital raise earlier this month, aiming to shore up financing for U.S. projects that have come under pressure from President Donald Trump’s opposition to renewable energy.
"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," the company said in a statement.
Orsted shares slid 3.4% in Copenhagen on Monday following the market open.
The offer carries a subscription ratio of 15:7, with 900,816,600 new shares to be issued at 66.60 crowns each. Shares will trade ex-rights from September 17, with subscriptions open between September 19 and October 2.
Gross proceeds are expected at around 60 billion crowns, with net proceeds of 59.4 billion crowns after costs.
According to RBC Capital Markets analysts, the theoretical ex-rights price works out to about 109 crowns per share on their estimates, compared with a closing price of 200.3 crowns.
"There is a significant discount beyond the sell-off we have already seen for the company at the time of the announcement," they wrote.
"As a reminder management highlight that DKK 40bn will be used to cover the funding for Sunrise Wind following the discontinuation of the divestment, whilst DKK 20bn will be used to strengthen capital structure," the analysts added.