Dong Energy sets IPO range at EUR 27-34 p/s

Image by Dong Energy (dongenergy.com)

Dong Energy A/S has set an indicative price range of DKK 200 (USD 30.1/EUR 27) to DKK 255 per share for its planned initial public offering (IPO) in Copenhagen, valuing the renewables-focused utility at up to DKK 106.5 billion.

The offer period commences today and will close no later than June 8. Shareholders are selling a stake of between 15.1% and 17.4% in the company, equal to between 63.25 million and 72.83 million shares. Shareholders, other than the Kingdom of Denmark and SEAS-NVE Holding A/S, have granted an over-allotment option of up to 10.9 million additional shares.

The offer price, determined through a book-building process, and the final number of shares sold are expected to be announced on June 9. The same day is expected to be the first day of trading for Dong Energy stock on Nasdaq Copenhagen under the ticker "DENERG".

As previously announced, no new share capital will be issued as part of the listing.

The implied market capitalisation of Dong based on the price range of the IPO arrives at of between DKK 83.5 billion to DKK 106.5 billion. The Kingdom of Denmark, holder of a 58.8% interest in the company, will seek to retain a stake of 50.1% following the listing. The other major stockholders include Goldman Sachs's New Energy Investment Sarl with a 17.9% interest at present, SEAS-NVE Holding A/S with 10.8% and ATP with 4.9%.

“We have constructed 22 offshore wind farms, and hold a market share of 26% of the globally installed offshore wind capacity. Our continued profitable growth towards 2020, which will more than double our installed capacity, is supported by a robust and highly visible offshore wind build out plan[..]All Dong Energy employees deserve tremendous credit for getting the company ready for this IPO,” said CEO Henrik Poulsen.

JP Morgan Securities Plc, Morgan Stanley & Co International Plc and Nordea Markets will serve as joint global coordinators and joint bookrunners.

(DKK 10 = USD 1.504/EUR 1.345)

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