Orsted's Rights Offering to Raise Up to $9.4 Billion Amidst Industry Pressures

Orsted A/S, a Danish wind developer, has announced a rights offering of up to $9.4 billion to stabilize its finances, which have been impacted by soaring costs, supply chain disruptions, and President Trump's rollback of "green" energy projects. Shares plunged 29%, falling below their 2016 IPO price, after the company announced the largest share offering in the European energy sector since 2009. The capital raise aims to shore up finances and address a funding gap after the company scrapped a stake sale in the Sunrise Wind project off New York. Orsted also plans to invest $145 billion from 2025-27 while maintaining an investment-grade rating and resuming dividends in 2026.

Orsted A/S, a leading Danish wind developer, has announced a rights offering of up to $9.4 billion to stabilize its finances, which have been severely impacted by rising costs, supply chain disruptions, and President Trump's rollback of "green" energy projects. The company's shares plunged by a record 29%, falling below their 2016 IPO price, after the announcement of the largest share offering in the European energy sector since 2009 [1].

The rights issue, valued at 60 billion Danish kroner ($9.4 billion), aims to address a significant funding gap created by the company's decision to scrap a stake sale in the Sunrise Wind project off New York's coast. This move was necessitated by the "material adverse development" in the U.S. offshore wind market [2].

Orsted plans to invest approximately $145 billion from 2025 to 2027 while maintaining an investment-grade credit rating and resuming dividends in 2026 [4]. The company expects earnings to rise to over $28 billion in 2026, down from previous guidance of $29 billion to $33 billion, and then to more than $32 billion in 2027 [4].

The Danish state will maintain its 50.1% stake in the company through the process, and Morgan Stanley is underwriting the rights offer, acting as an adviser to Orsted [4]. The company also announced plans to sell its European onshore wind business, expecting to raise more than $35 billion from divestments during 2025 and 2026 [4].

Orsted's Chief Executive Officer, Rasmus Errboe, stated, "The need for equity doesn’t come as a complete surprise given its deteriorating balance sheet over the last few years and increasingly tough transaction market that made it harder to close its funding gap" [4]. The company plans to continue "rightsizing" the organization and lowering costs to navigate the challenging market conditions.

References:
[1] https://www.cnbc.com/2025/08/11/orsted-shares-plunge-as-it-plans-9point4-billion-rights-issue.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U3043:0-denmark-s-orsted-plans-to-raise-9-4-billion-in-rights-issue/
[4] https://financialpost.com/pmn/business-pmn/orsted-plunges-after-plan-for-9-billion-rights-offer