Danish energy company Ørsted said Monday its 60 billion Danish kroner rights issue was oversubscribed, a key step in its plan to shore up its finances after major setbacks in the U.S.
The company said existing shareholders and other investors subscribed for approximately 99.3% of the new shares offered.
Demand for the remaining shares was "extraordinarily high," meaning the underwriting bank syndicate did not need to subscribe for any shares, according to the company.
The capital raise was launched in September after Ørsted scrapped the partial sale of its Sunrise Wind project and faced a U.S. government stop-work order on its Revolution Wind project.
The Danish state, Ørsted's majority shareholder, subscribed for its 50.1% portion of the offering.
"The rights issue strengthens Ørsted’s financial foundation, allowing us to focus on delivering our six offshore wind farms under construction, continue to handle the regulatory uncertainty in the US, and strengthen our position as a market leader in offshore wind," Group President and CEO Rasmus Errboe said in a statement.
Ørsted expects to complete the offering on Oct. 9, with the new shares set to begin trading on the Nasdaq Copenhagen on Oct. 10.
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