Orsted's Share Value Plummets After U.S. Imposes Construction Freeze

Orsted, a company known for developing wind farms, experienced a sharp decline in its stock value as trading initiated on Monday. This drop followed the U.S. government's directive to suspend work on a nearly finished project.

Immediate Market Impact

Approximately 30 minutes after the market bell rang, Orsted's stock was observed to have decreased by around 17%.

Financial Strategy Challenges

The directive from the U.S., made public late Friday, has intensified concerns about Orsted's prospect of drawing in capital, as noted by industry analysts in remarks to Reuters.

Capital Raising Initiatives

Earlier this month, Orsted unveiled plans for a rights issue valued at 60 billion Danish kroner, equivalent to nearly $9.4 billion. Despite recent setbacks, the company expressed intent to proceed with this initiative, reassured by support from its major shareholder, the Danish government.