UK Construction Media

Danish Windfarm giant, Dong Energy, plans summer IPO

News   •   May 13, 2016 11:00 BST

Danish utility and windfarm company, Dong Energy has announced plans to float the business in what is being anticipated as one of Europe’s largest stock market listings of 2016.

Dong has invested £6Bn in offshore wind power in the UK and has plans to spend a further £5Bn over the next five years.

The company announced its intention to list on the Nasdaq in Copenhagen, with analysts predicting the company would be worth up to £8.5Bn.

The floatation will see shareholders, including the Danish government, selling at least 15% of existing shares. The government will, however, retain a 50.1% stake in Dong.

In a statement, Dong said: “Barring unforeseen circumstances and subject to prevailing market conditions, the Initial Public Offering could be launched for a listing in summer 2016.”

Dong has previously abandoned plan to float the company on three occasions between 2006 and 2008.

It has committed an estimated £3Bn to the Hornsea One facility, which once completed will be the largest offshore windfarm capable of powering more than million UK homes. The project is expected to create 2000 jobs during the construction phase of the project, with 300 jobs for its operation.

The company currently employs around 700 people in the UK.

Henrik Poulsen, CEO of DONG Energy, said: “We have a robust and highly visible build-out plan for offshore wind, which will deliver strong and profitable growth in the coming years. Our focus on renewable energy has turned DONG Energy into one of the fastest growing energy groups in Europe with almost two thirds of operating income generated outside of Denmark.

The planned IPO will create a strong platform for DONG Energy as we continue to lead the transformation of the energy system.”

Claus Hjort Frederiksen, Denmark’s Minister of Finance, commented: “The Company has grown from primarily being a Danish utility business to become an international company with many activities outside of Denmark.

The IPO has the support of a broad majority in Parliament, and we look forward to follow the Company’s continued journey as a listed company”.