Dong sets IPO price range and date

Danish utility and offshore wind developer Dong Energy has published more details about its intended initial public offering (IPO) on Nasdaq Copenhagen, including a nindicative price range has been set at DKK 200 to DKK 255 per share. This proposed float price implies a market value of of between DKK 83.5 billion to DKK 106.5 billion (approx £8.6bn to £10.9bn).

The final price will be set a bookbuilding process which will run from today (26 May) until 8 June, with the shares to be distributed on the first day of trading the Copenhagen stock exchange on 9 June.

The total shares sold in the IPO will be 15.1 and 17.4 per cent of the company’s total shares. The majority shareholder, the Kingdom of Denmark, will maintain a 50.1 per cent shareholding in Dong Energy after the IPO. The company expects to sell at least 15 per cent of the existing shares in the company to the current shareholders of Dong Energy. No new share capital will be issued in the IPO, the shares are a result of a partial sell-down by the current shareholders.

The Company is currently owned by the Kingdom of Denmark (58.8 per cent), New Energy Investment  (indirectly owned by entities under the control of The Goldman Sachs Group, Inc.) (17.9 per cent), SEAS-NVE Holding A/S (10.8 per cent), ATP (4.9 per cent) and other shareholders (7.6 per cent).

Dong’s chief executive Henrik Poulsen said: “Dong Energy is one of the fastest growing energy companies in Europe, and a world leader in offshore wind. We have constructed 22 offshore wind farms, and hold a market share of 26% of the globally installed offshore wind capacity. Our continued profitable growth towards 2020, which will more than double our installed capacity, is supported by a robust and highly visible offshore wind build out plan.”

Related content:

European utilities’ credit ratings may fall, warns Moody’s

Dong Energy seeks to cut balancing exposure by using large-customer flexibility

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