Orsted Share Price Plummets 26% Amid $9.4 Billion Rights Issue Plan

Orsted shares plummeted 25.5% after announcing a $9.4 billion rights issue due to a "material adverse development" in the US market, which prevented the company from raising funds from a planned partial divestment of its Sunrise Wind project off the coast of New York. The company will offer existing shareholders first refusal on the new shares.

Orsted shares dropped by 25.5% on Monday morning after the wind farm developer announced a $9.4 billion rights issue due to a "material adverse development" in the U.S. market. This development prevented the company from raising funds from a planned partial divestment of its Sunrise Wind project off the coast of New York [1].

The company, which is majority-owned by the Danish state, will offer new shares to existing shareholders, with the Danish state committing to subscribe for its pro-rata share. This move aims to raise $9.4 billion to cover funding requirements for the full ownership of Sunrise Wind, strengthen the company's capital structure, and provide flexibility for future offshore wind partnerships and divestments [2].

Orsted's decision to halt the sale of its U.S. wind project comes amid challenging market conditions, including supply chain bottlenecks, higher interest rates, and regulatory hurdles. The company has faced opposition from the Trump administration, which suspended new federal wind leases and implemented tariffs on EU imports, including steel and aluminum [2].

Orsted's Chair, Lene Skole, stated that the rights issue will strengthen the company's capital structure and provide financial robustness during the years 2025 through 2027, when the company aims to deliver on its 8.1 gigawatt offshore wind construction portfolio [2].

The company has also lifted its investment plans for the years between 2025 and 2027 to 145 billion kroner from 130 billion kroner, expecting to report Ebitda excluding new partnerships and cancellation fees in excess of 28 billion kroner in 2026 and in excess of 32 billion kroner in 2027 [2].

An extraordinary general meeting will be called for September 5 to approve the rights issue.

References:
[1] https://www.cnbc.com/2025/08/11/orsted-shares-plunge-as-it-plans-9point4-billion-rights-issue.html
[2] https://www.morningstar.com/news/dow-jones/20250811898/orsted-plans-94-billion-rights-issue-after-halting-sale-of-us-wind-project-update