Orsted Plans $9.4B Rights Issue at 67% Discount

Danish renewable energy company Orsted has launched a $9.4 billion rights issue, selling 901 million new shares at a roughly 67% discount to the last closing price to raise capital for its offshore wind projects, specifically the 8.1 GW Sunrise Wind project. The discounted rights offering, which allows existing shareholders to maintain their stakes, comes after Orsted abandoned plans to partially divest Sunrise Wind due to disruptions in the U.S. wind market, exacerbated by President Trump's administration ordering a halt to construction of a U.S. offshore wind farm. This capital raise is critical for Orsted to stabilize its balance sheet and secure funding for ongoing and future wind farm developments amid investor skepticism following challenges in the U.S. market. The rights issue, coordinated by major global banks, is one of the largest by a European energy company in over a decade and represents a test of investor confidence in the offshore wind sector's potential for growth and profitability. Orsted expects to complete the offering by early October. The company emphasized that the fundraising will provide a robust financial foundation to realize its business potential despite setbacks caused by U.S. regulatory opposition.