Dong Energy, the Danish utility, and the world’s largest offshore wind energy operator said on Thursday that it plans to list its shares on the Nasdaq Copenhagen exchange in an initial public offering (IPO) this summer. The world’s biggest offshore wind farm operator could be valued at DKK80 billion ($12.3bn), according to analysts, making it Denmark’s largest ever flotation.
The plan involves shareholders selling at least 15 percent of existing shares in Dong at the IPO. The Danish government; a majority shareholder with 58.8 per cent, will sell part of its stake but retain a 50.1 percent share in the business. Chief Executive Henrik Poulsen, said at Thursday’s press meeting: “The whole energy sector is moving from black to green and on the back of that we have also transformed DONG Energy.”
Thursday’s announcement “marks an important step in Dong Energy’s strategic journey,” according to Thomas Thune Andersen, the company’s chairman. “In just a decade, DONG Energy has transformed from being a regional utility business and one of the most coal-intensive utilities in Europe into a global leader in renewable energy. We look forward to inviting new shareholders to take part in the future ownership of the Company and to join us in our journey to build a sustainable energy system for the future.”
In 2015, half of Dong’s operating profit was still generated from its oil and gas business. Last week marked an important change as Dong divested its Danish gas distribution grid for a total of DKK 2.3 billion ($349 million). Despite has a market capitalisation potential of €11 billion, ranking it as a mid-size player in the European utility industry. Currently, Dong employs 700 people in Britain, where its assets include the 175-turbine London Array wind farm off the coast of Kent, which was the world’s biggest at the time of construction in 2012.
The company has a pipeline of major wind projects in Britain and Germany, including the 1.2GW Hornsea One facility, off the east Yorkshire coast, which will be the largest offshore wind farm upon completion in 2020. Costs are estimated to amount to £3 billion. Denmark’s Finance Minister, Claus Hjort Frederiksen, commented: “We are proud of Dong Energy’s development in renewable energy and its contribution to a sustainable future. The IPO has the support of a broad majority in parliament, and we look forward to following the company’s continued journey as a listed company.”
Shareholders met in Copenhagen last Wednesday night to give the final go-ahead. JPMorgan Securities, Morgan Stanley, and Nordea have been hired to manage the flotation and act as lead advisers on the IPO.