Edda Wind to apply for a listing on the Oslo Stock Exchange

4C Offshore | Tom Russell
By: 09/11/2021 Edda Wind ASA

Edda Wind ASA (Edda Wind) has announced its intention to launch an offering of shares in the company and to apply for a listing on the Oslo Stock Exchange (the IPO).

Headquartered in Haugesund, Norway, it develops, builds, owns and operates purpose-built Service Operation Vessels (SOV) and Commissioning Service Operation Vessels (CSOV) for offshore wind farms. It is owned by Østensjø Wind AS (Østensjø) and Wilhelmsen New Energy AS (Wilhelmsen) on a 50/50 basis.

The company owns and operates two purpose-built offshore wind SOVs, ,
Edda Passat and Edda Mistral, and has six dedicated offshore wind vessels under construction, with delivery from 2022. The vessels were delivered in March and September of 2018 respectively and 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 utilising liquid organic hydrogen carrier as an energy source.

The IPO will comprise an offering of new shares in the company, expected to raise gross proceeds of NOK 875 million. The IPO will support the company’s position as a provider of purpose-built vessels for the offshore wind industry and support financing of the company’s current newbuilding programme. Edda Wind is currently in the process of evaluating further newbuild opportunities.

Three cornerstone investors have undertaken 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, which equates to a pre-money equity value of NOK 1,015 million based on the current number of shares outstanding.

These three cornerstone investors are i) Geveran Trading Co. Limited (“Geveran”), a company indirectly controlled by trusts established by Mr. John Fredriksen for the benefit of his immediate family (NOK 200 million committed), ii) Xclat Holdings Ltd, a subsidiary of the Quantum Pacific Shipping group associated with Mr. Idan Ofer (NOK 200 million committed), and iii) Nordea Investment Management (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.

Kenneth Walland, CEO, commented: “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. 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.”

Håvard Framnes, Chair, said: “Combined, Edda Wind’s main owners, Østensjø and Wilhelmsen, have more than 200 years of offshore and maritime experience. We draw on Østensjø’s experience in operating advanced offshore service vessels, including gangway personnel transfers, combined with Wilhelmsen’s significant presence across the maritime value chain, to create a company with a unique potential in a fast-growing market.

"Geveran and Xclat will further broaden the international network and strengthen the shipping competence and experience of the Company. Edda Wind will have an unmatched global position for further growth and value creation.”

For everything you need to know about the strategies used to support the construction and O&M of offshore wind farms, current and future, including supply and demand for service and accommodation vessels, and helicopters, click here.