Share over-allotment options could give Norwegian wind farm vessel owner Edda Wind extra cash for newbuildings as it launches its Oslo initial public offering.
The joint venture between Ostensjo Rederi and Wilh Wilhelmsen is selling stock worth NOK 875m ($101m) as part of a listing in the Norwegian capital.
ABG Sundal Collier and DNB Markets are joint global coordinators and bookrunners, with Clarkson Platou Securities as a bookrunner.
These managers are expected to receive additional shares equalling up to 15% of the offering, while stabilisation manager ABG Sundal Collier could receive another 15% on top of this, meaning a total extra cash raise of $30.3m.
These options will help the shipping company meet any extra demand from investors.
"Any net profit from any stabilisation activities shall be for the benefit of the company," Edda Wind said.
Bookbuilding begins on 16 November and will close on 24 November.
The fixed price per share is NOK 30.75 and the deal gives a pre-money equity value for Edda Wind of about NOK 1bn.
The cash will go towards the equity finance portion of six new vessels delivering from 2022.
New ships could be contracted
Proceeds will also repay shareholder loans from Ostensjo and Wilhelmsen, and could also be used for further newbuilding contracts.
The company owns and operates two purpose-built offshore wind-service operation vessels (SOVs) and has six more ships under construction — two more SOVs and four construction service operation vessels (CSOVs).
The company is currently in the process of evaluating further newbuilding opportunities in order to capitalise on the ever-increasing demand for top-tier SOVs or CSOVs as the industrialisation of offshore wind unfolds.
All the newbuildings are prepared for zero-emission operations, using a liquid organic hydrogen carrier as an energy source.
The IPO was announced earlier in November when it was revealed that heavyweight investors John Fredriksen and Idan Ofer were taking part.
The two shipowners, together with Nordea Investment Management, are subscribing for NOK 465m of the shares.
