Denmark’s Dong valued at $15bn joins list of European IPO giants

Bloomberg

Dong Energy A/S became Europe’s biggest initial public offering this year, with investors lining up to own shares in the Danish utility as it transforms itself into a renewable energy giant.
The world’s biggest offshore wind-park operator sold 17.4 percent of its shares at 235 kroner a piece, raising 17.1 billion kroner ($2.6 billion), according to a statement to Copenhagen the stock exchange on Thursday. The price gives the whole company a value of 98.2 billion kroner. “There has been a lot of interest in becoming part of the ownership of Dong Energy, both among retail and professional investors,” Claus Hjort Frederiksen, Denmark’s finance minister, said in a statement. “It gives Dong Energy a solid foundation to retain and develop its position as one of the leading green energy companies in the world.”
The shares rose in their first day of trading on the Copenhagen exchange. The stock jumped 10 percent to 258.50 kroner at 9:20 a.m. local time.
The Danish state will remain Dong’s biggest owner, with just over 50 percent of the shares, followed by Goldman Sachs. The Wall Street bank has consistently underscored its commitment to being a long-term holder of the company.
Gross proceeds may rise to 19.7 billion kroner if an over-allotment option is exercised. Shareholders excluding Denmark and SEAS-NVE Holding A/S have said they would offer an additional 10.9 million shares. The option must be used by July 8.
The IPO puts an end to years of hand wringing, with successive governments since 2004 planning, and then pulling, a sale of Dong as markets shifted. Dong has tried, and so far failed, to sell its oil unit as it rebrands itself as a company focused on greener technology.
The banks behind the IPO were J. P. Morgan Securities Plc, Morgan Stanley & Co International Plc, Nordea Markets, Citigroup Global Markets Limited, Danske Bank A/S, UBS Limited, ABG Sundal Collier ASA, Rabobank U.A and RBC Europe Limited.