Ørsted released a prospectus for a DKK 60 billion rights issue, offering 900.8 million new shares at DKK 66.6 per share, a 67% discount to the last closing price. The price represents a 78% discount to the share price on Aug. 8, higher than expected, leading to an EPS dilution of 63%.

President Trump’s administration issued a stop-work order on the Revolution Wind US project, causing a 115% increase in shares and a 40% cut in fair value estimate to DKK 170. Uncertainties remain around Revolution Wind and the farm-down of Hornsea 3, leading to an overvaluation of shares.

The market reaction suggests anticipation of a larger discount, with uncertainties surrounding key projects. The last trading day with rights is Sept. 16, while the subscription period runs from Sept. 19 to Oct. 2. Stay tuned for updates on Ørsted’s stock performance and key developments.

Read more at Morningstar: Massive Rights Issue Comes With a Huge Discount