DONG Energy has always been hinting at an Initial Public Offering (IPO), and in May announced its official intention to proceed, suggesting that it could move as early as this summer.
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Analysts have said that the strong debut by Dong reflects a growing confidence about the future of renewable energy as governments continue to commit to reducing carbon emissions.
COPENHAGEN-Denmark’s Dong Energy, which focuses on wind power generation, has seen its shares jump on the first day of trading, bringing its market value to 98 billion kroner (US$15 billion)-the most of any listed company in the country.
London Array Limited, which is owned by the consortium of Masdar, Dong Energy and EON, said the capacity factor for the month reached 78.9 per cent.
Immediately following the settlement of the offering, the majority shareholder – the Kingdom of Denmark would retain 50.4 percent stake in the company, compared to its previous stake at 58.8 percent.
In the UK, DONG is behind the huge Walney Extension Offshore Wind Farm development near the Cumbrian coast, and the Burbo Bank offshore wind farm near Liverpool.
“Solar power is by far the biggest challenge to the wind industry because it’s cheaper, easier to handle, and has lower maintenance costs”, said Peter Garnry, head of equity strategy at Saxo Bank.
New Energy Investment Sarl, a Luxembourg-based vehicle through which Goldman owns its Dong stake, holds 13.4 per cent of the company after the IPO.
Gross proceeds could rise to 19.7 billion crowns if the sellers exercise a so-called overallotment option to offload further stock.
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In total DONG Energy sold more than 72 million shares in the company, with 10 per cent going to retail investors and the remaining 90 per cent going to Danish and worldwide institutional investors.
