Norwegian offshore wind service company Edda Wind has announced its intention to launch an offering of new shares in the company and to apply for a listing on the Oslo Stock Exchange.
The initial public offering (IPO) is expected to raise gross proceeds of Nkr875m (€88m).
The money will support the company’s position as a provider of purpose-built vessels for the offshore wind industry, support financing of its current new building programme, and facilitate accelerated growth.
Edda Wind said it is currently in the process of evaluating further newbuild opportunities in order to capitalise on the ever-increasing demand for top tier service operation vessels (SOVs) and commissioning service operation vessels (CSVOs) as industrialisation of offshore wind unfolds.
The company said three “cornerstone investors” have undertaken to acquire shares for a total amount of Nkr465m in the IPO, subject to certain conditions, and for price per share of up to Nkr30.75.
This equates to a pre-money equity value of Nkr1.015bn based on the current number of shares outstanding.
Geveran Trading, a company indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family has committed Nkr200m.
Xclat Holdings, a subsidiary of the Quantum Pacific Shipping group associated with Idan Ofer has also committed Nkr200m, while Nordea Investment Management has committed Nkr65m.
Geveran and Xclat will both join the Edda board of directors, with effect from the first day of trading on the Oslo Stock Exchange, and take an active role in the further development of the company.
Edda Wind chief executive Kenneth Walland (pictured) said: “Being an early mover when it comes to delivering purpose-built vessels for offshore wind farm operations, Edda Wind has already gained a solid track record of excellence in the offshore wind industry.
“The company has carried out advanced and important projects both in the commissioning and O&M market and by that created a solid reputation and built strong relations with the major charterers in these segments.
“The offshore wind market is fast-moving, capital intensive and requires significant investments.
“With three new cornerstone investors and an IPO securing a solid foundation for future growth, Edda Wind will get an even stronger backing and necessary support to capitalise on the huge market potential we see ahead.
“This will enable us to continue our journey towards becoming a world-leading provider of offshore wind services together.”