Vow ASA: Preliminary Results of the Rights Issue

Vow ASA, a Norwegian company specializing in waste-to-energy solutions, recently concluded its fully underwritten rights issue, raising gross proceeds of NOK 250,000,000. The preliminary results of the issue indicate strong investor interest, with approximately 135,000,000 Offer Shares subscribed, representing around 80% of the total Offer Shares. This article explores the factors contributing to the success of the rights issue and its implications for the company and its investors.



Vow ASA's environmental mission and innovative solutions played a significant role in driving investor interest in the rights issue. The company's world-leading solutions convert biomass and waste into valuable resources and clean energy, enabling industry decarbonisation and material recycling. Its strong niche positions in cruise market leadership, food safety, robotics, and heat-intensive industries further enhance its appeal to investors seeking sustainable and growth-oriented opportunities.

The involvement of prominent primary insiders and their close associates also contributed to the success of the rights issue. Key figures like Henrik Badin (CEO), Thomas Borgen (Chairman), and Jonny Hansen (COO) received tradable subscription rights, with Badin Invest Limited and Exproco Limited (closely associated to Badin and Hansen, respectively) receiving substantial allocations. This involvement could have boosted confidence in the issue, as insiders' participation often signals their belief in the company's prospects.

The subscription rights granted to existing shareholders influenced the final allocation of Offer Shares. Each existing shareholder received 1.464117 subscription rights for each share held, with the number of subscription rights rounded down to the nearest whole number. This allocation method ensured that shareholders with larger holdings had a higher chance of subscribing for more Offer Shares, potentially leading to a more concentrated ownership structure post-issue.

The subscription ratio of 1:1 (number of new shares per subscription right) impacted the distribution of Offer Shares among subscribers. This ratio, combined with the maximum number of new shares (166,666,666), determined the distribution of Offer Shares. With approximately 135,000,000 Offer Shares subscribed, the allocation was proportional to the number of subscription rights held by each shareholder. This ratio ensured fairness in the distribution, as each subscription right was equally valuable in acquiring new shares.



In conclusion, Vow ASA's preliminary results of the rights issue demonstrate strong investor interest in the company's environmental mission and innovative solutions. The involvement of prominent primary insiders and the allocation of subscription rights to existing shareholders further contributed to the success of the issue. As the company continues to grow and innovate, investors can expect to benefit from its commitment to sustainability and technological advancements.

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