COPENHAGEN, October 6, 2025 – Danish offshore wind developer Orsted (ORSTED.CO) raised 9.35 billion in a heavily discounted share issue as the company seeks to counter mounting pressures from US offshore wind market setbacks1. The capital injection provides crucial liquidity as Orsted navigates challenging operational conditions and regulatory headwinds in its key American expansion markets.
- Orsted raises 9.35 billion through heavily discounted rights offering
- Danish state subscribes to 50.1% of new shares issued
- Move aims to counter US offshore wind market pressures
Market Reaction & Context
The rights offering saw 99.3% of Orsted’s new shares subscribed, with the Danish state taking up 50.1% of the allocation2. The fundraising comes as offshore wind developers face mounting challenges from supply chain disruptions, higher interest rates, and regulatory uncertainty across key markets including the United States.
Orsted’s capital raise reflects broader industry pressures, with renewable energy stocks under pressure as developers grapple with project delays and cost overruns. The company’s move to strengthen its balance sheet follows similar actions by European renewable energy peers facing margin compression and financing challenges.
Strategic Rationale
The 59.56 billion Danish crown offering provides Orsted with financial flexibility as it navigates what Bloomberg described as a “downturn” in offshore wind development3. The heavily discounted nature of the rights issue indicates investor concerns about the company’s near-term prospects and the challenging operating environment.
Orsted previously announced expectations to raise more than 35 billion Danish crowns (5.44 billion) through asset divestments between 2025 and 20264. The rights offering appears to supplement these planned disposals as the company restructures its capital position.
Industry Headwinds
The fundraising comes amid what industry observers characterize as a “US U-turn on wind,” reflecting shifting regulatory and market dynamics affecting offshore renewable projects5. Orsted, like other European developers, had made significant investments in American offshore wind capacity, betting on long-term policy support and favorable market conditions.
Rising construction costs, supply chain bottlenecks, and evolving permitting requirements have complicated project economics for offshore wind developers globally. The sector has seen several high-profile project cancellations and delays as developers reassess the viability of previously announced developments.
Financial Impact
The substantial equity raise will dilute existing shareholders but provides Orsted with enhanced financial stability during a difficult operating cycle. The company’s decision to pursue a rights offering rather than debt financing suggests management prioritizes balance sheet strength over near-term earnings per share considerations.
With the Danish state maintaining a significant ownership position through its participation in the rights offering, Orsted retains strong government backing for its renewable energy strategy. This support could prove valuable as the company navigates regulatory and market challenges across its international operations.
Not investment advice. For informational purposes only.
References
1(October 6, 2025). “Denmark’s Orsted raises 9.35 billion in share issue”. MarketScreener. Retrieved October 6, 2025.
2(October 6, 2025). “Orsted raises 9.35 billion in share issue”. MarketScreener. Retrieved October 6, 2025.
3(October 6, 2025). “Orsted Raises 9.4 Billion to Counter Hit From US U-Turn on Wind”. Bloomberg. Retrieved October 6, 2025.
4(August 11, 2025). “rsted shares sink over 9.4B rights issue tied to US offshore wind”. Renewable Energy World. Retrieved October 6, 2025.
5(September 15, 2025). “Orsted Offers Shares at Sharp Discount in Rights Issue”. Wall Street Journal. Retrieved October 6, 2025.