NKT seeks to raise USD 380m to fund capacity expansion
Image by NKT (www.nkt.com)
Danish power cables supplier NKT A/S (CPH:NKT) on Thursday announced the launch of a rights issue targeting up to DKK 2.74 billion (USD 393m/EUR 368m) in gross proceeds that will support the capacity expansion plans it unveiled just recently.
The company is offering up to 10.74 million new shares with a nominal value of DKK 20, each being issued with pre-emptive rights for existing shareholders. The subscription price for the new shares is set at DKK 255 apiece.
Each existing shareholder as of June 13, 2023, will be allocated one pre-emptive right per one share held, while four pre-emptive rights will entitle the holder to subscribe for one new share with a nominal value of DKK 20 each.
The pre-emptive rights can be traded from June 12 till June 23. The subscription period for new shares starts on June 14 and closes on June 27. The offering is scheduled to be completed on July 4, 2023.
After the deduction of costs and expenses, NKT expects to raise about DKK 2.65 billion in net proceeds to be invested in production and installation capacity so that the company is able to execute on its record-high order backlog for high-voltage power cables and meet anticipated future customer demand.
NKT reiterated that its high-voltage order backlog amounted to EUR 7 billion (USD 7.47bn) at the end of March 2023.