Danish company, Dong Energy, has successfully completed Europe’s largest stock market flotation this year. This puts its value at around £10bn (Kr 98.2bn). Dong had hoped to see the business valued at £11bn.
Share price increase
The Copenhagen-based group, which employs 700 people in Britain and is in the middle of a transition from a focus on fossil fuels to renewables, saw its shares soar a further 10% after they were sold to new investors.
Claus Hjort Frederiksen, Denmark’s finance minister, said: “There has been a lot of interest in becoming part of the ownership of Dong Energy, both among retail and professional investors. It gives Dong Energy a solid foundation to retain and develop its position as one of the leading green energy companies in the world”.
UK investment set to double
The Danish government continues to be Dong’s biggest owner, with just over half of the shares whilst US investment bank, Goldman Sachs, has reduced its holding from 17.4% to 13.4%. The company has also seen profits increase by 35% in the first quarter and has invested £6bn in the UK so far. Dong plan to double this by 2020 through offshore projects such as Hornsea Project One and the London Array.
There has been renewed interest from a host of oil and gas companies in low carbon investments since the Paris climate change talks. Total, of France, recently unveiled a $1bn (£700m) plan to buy Saft, a company that specialises in batteries which hold the key to electricity storage generated from low carbon sources.