Dong of Denmark: To Buy or Not to Buy?
While Dong Energy is loss-making, it has few lookalike peers
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Something is rotating in the state of Denmark. Dong Energy is poised to become Europe's biggest IPO so far this year with a share sale valuing the wind farm developer as high as 107 billion Danish krone ($16 billion). To buy or not to buy? Investors have reasons for Hamlet-like procrastination -- Dong is loss-making, hard to value and has few lookalike peers.
The IPO stock -- 15-17 percent of the company -- is being sold by the Kingdom of Denmark, Goldman Sachs and others. They get the windfall, while new investors get the chance for concentrated exposure to a major renewables sector via the world’s biggest player in offshore wind by market share.