Orsted has published a prospectus and launched its underwritten rights issue to raise about €8bn (DKK60bn), offering shares at a significant discount on their current market value.
The company said the offering will cover additional funding requirements for the Sunrise Wind offshore wind farm and strengthen its financial position.
The subscription ratio is 15:7 at a price of DKK66.60 per new share. This is 67% less than the DKK200.30 shares closed at on Friday but experts suggested a 39% haircut is more accurate based on a so-called theoretical ex-right price, which is a closer valuation as it takes into account the new number of shares at the offer price.
A total of 900,816,600 new shares will be issued with pre-emptive rights for existing shareholders.
The Danish state, which holds 50.1% of Ørsted, has committed to exercise its rights, while Equinor, which owns 10%, intends to maintain its stake.
The offer is fully underwritten by a syndicate led by Morgan Stanley, BNP Paribas, Danske Bank and J.P. Morgan, with BofA Securities and Goldman Sachs as joint bookrunners and several co-bookrunners including Deutsche Bank, Nordea, Rabobank, SEB, Crédit Agricole and SMBC.
Trond Westlie, Orsted’s chief financial officer (pictured), said: “Today, following the mandate given to us by our shareholders at the extraordinary general meeting on 5 September 2025, 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 Ørsted to realise the potential of our business.”
Westlie added: “Orsted is currently constructing 8.1GW of offshore wind, which, when commissioned, will contribute approximately DKK11-12bn in annual earnings (EBITDA) by 2028.
“Our focus will predominantly be on our core markets in Europe where there’s continued strong support for offshore wind. With 30 years of experience in offshore wind, Ørsted is in a strong position to deliver on Europe’s offshore wind ambitions, strengthening Europe’s ability to deliver clean, secure, and affordable energy.”
Orsted said the net proceeds of about DKK59.4bn will cover roughly DKK40bn in additional funding needed following the discontinuation of the Sunrise Wind divestment and project financing process.
The company intends to use the remaining DKK20bn to strengthen its capital structure and enhance financial flexibility for the 2025 to 2027 period.
The offering is also designed to mitigate risks from regulatory uncertainties in the US offshore wind market, including the order issued by the Bureau of Ocean Energy Management to halt activities at the Revolution Wind project.
Orsted added that the strengthened balance sheet will support its 8.1GW offshore wind portfolio under construction and enhance its ability to pursue value-accretive projects in Europe and select Asia-Pacific markets.
The rights trading period will run from 17 to 30 September, with the subscription window for new shares open from 19 September to 2 October.
Results of the issue are expected on 6 October, with completion scheduled for 9 October and the new shares listed on 10 October.
The company said the announcement does not change its 2025 financial guidance.