Edda Wind Planning Oslo IPO

Norwegian-based offshore wind services company Edda Wind has announced a plan for an initial public offering of the company’s shares on the Oslo Stock Exchange.

Edda Wind is a leading pure play offshore wind service company headquartered in Haugesund, Norway. The company specializes in developing, building, owning and operating purpose-built Service Operation Vessels (SOV) and Commissioning Service Operation Vessels (CSOV) for offshore wind farms worldwide.

The company currently owns and operates two purpose-built offshore wind SOVs, Edda Passat and Edda Mistral, delivered in 2018. Both vessels are on firm five-year contracts (with options for extension of up to five additional years) with Ørsted. The company also has six dedicated offshore wind vessels under construction – two offshore wind SOVs and four offshore wind CSOVs – with delivery from 2022. All newbuild vessels are “prepared for zero-emission utilizing liquid organic hydrogen carrier as an energy source.”

The company is owned by Østensjø Wind AS and Wilhelmsen New Energy AS on a 50/50 basis.

The IPO will offer new shares in the company and is expected to raise gross proceeds of NOK 875 million (USD $102 million). Net proceeds will be used to support financing of the company’s current newbuilding program as well as to accelerate future growth.

Edda Wind says it is currently in the process of evaluating further newbuild opportunities in order to “capitalize on the ever-increasing demand for top tier C/SOVs as industrialization of offshore wind unfolds.”

The company said three cornerstone investors have moved to acquire shares for a total amount of NOK 465 million in the IPO, subject to certain conditions, and for price per share of up to NOK 30.75, equating to a pre-money equity value of NOK 1,015 million based on the current number of shares outstanding.

These investors include Geveran Trading Co. Limited, a company indirectly controlled by trusts established by Norwegian shipping magnate John Fredriksen for the benefit of his immediate family, which has committed to NOK 200 million. Also, Xclat Holdings Ltd, a subsidiary of the Quantum Pacific Shipping group associated with Idan Ofer, with NOK 200 million committed, Nordea Investment Management with NOK 65 million committed. Geveran and Xclat will both join the Board of Directors in the Company, with effect from the first day of trading on the Oslo Stock Exchange, and take an active role in the further development of the Company.

“Being an early mover when it comes to delivering purpose-built vessels for offshore wind farm operations, Edda Wind has already gained a solid track record of excellence in the offshore wind industry,” said Kenneth Walland, CEO of Edda Wind. “The company has carried out advanced and important projects both in the commissioning- and O&M market and by that created a solid reputation and built strong relations with the major charterers in these segments.”

“The offshore wind market is fast-moving, capital intensive and requires significant investments. With three new cornerstone investors and an IPO securing a solid foundation for future growth, Edda Wind will get an even stronger backing and necessary support to capitalise on the huge market potential we see ahead. This will enable us to continue our journey towards becoming a world-leading provider of offshore wind services together,” Walland said.

More details can be found here.