Dong Energy will launch an Initial Public Offering in summer 2016 for a minority stake in the government-controlled offshore wind company.
The long-planned IPO will result in shares being traded on Nasdaq Copenhagen and will cover at least 15% of the company through a “partial sell-down”.
“The final offer size will be communicated in connection with publication of the prospectus by the company. No new share capital will be issued in the IPO,” said Dong.
Existing shareholders include Goldman Sachs with 17.9%, SEAS-NVE with 10.8% and other shareholders with 7.6%.
Danish finance minister Claus Hjort Frederiksen said: “The company has grown from primarily being a Danish utility business to become an international company with many activities outside of Denmark.
“The IPO has the support of a broad majority in Parliament and we look forward to follow the company’s continued journey as a listed company”.
Dong chief executive Henrik Poulsen added: “We have a robust and highly visible build-out plan for offshore wind which will deliver strong and profitable growth in the coming years. Our focus on renewable energy has turned Dong Energy into one of the fastest growing energy groups in Europe with almost two-thirds of operating income generated outside of Denmark.”
He added: “The planned IPO will create a strong platform for DONG Energy as we continue to lead the transformation of the energy system.”
Dong said that, provided that the IPO takes place in accordance with the currently expected time plan, it intends to pay a dividend of Dkr2.5 billion for 2016.
Dong’s target towards 2020, supported by cash flow growth from offshore wind, is “to increase the annual dividend by a high single digit rate compared to the dividend for the previous year”.
JP Morgan Securities, Morgan Stanley and Nordea Markets have been appointed to support the IPO.
Image: Dong Energy
