Orsted, a Danish company, raises $9.35 Billion in a share issue

Orsted, the Danish offshore wind developer, said it raised $9.35 billion in a heavily-discounted share issue on Monday. The company is bolstering its finances amid uncertainty caused by Trump's administration.

The company reported that 99.3% was subscribed. Demand for the remaining shares is "extraordinarily" high.

The price per share was 66.6 crowns, which is a significant discount to Monday's stock market price of 122.3 crowns.

The new issue was open to all existing shareholders. The Danish state, who controls the company, contributed 50.1%. Equinor of Norway, which owns 10% in Orsted, said that it would participate.

The rights issue will strengthen Orsted's financial base, allowing it to concentrate on delivering the six offshore wind farms currently under construction and continue to deal with regulatory uncertainty in the U.S.

A U.S. Federal Judge lifted the ban on Orsted in September, which allowed the company to resume work.

Donald Trump ran his campaign on a promise that

End the offshore wind industry

Oil and gas is promoted while criticizing it as too expensive, harmful to whales and birds.

Orsted announced in August that it would use two-thirds the new capital to build its Sunrise Wind project on the U.S. East Coast, after Trump's antipathy towards wind power turned away potential partners.

Last month, the company was able to provide a service.

unveiled

Details of the plan.

S&P Global has warned that the new issue may only provide relief for three to six months. Reporting by Louise Rasmussen, Rishabh Jassiwal and Cynthia Osterman.

(source: Reuters)