Fred Olsen’s offshore wind installation and servicing business, Windcarrier, is planning an initial public offering (IPO) on the Oslo Stock Exchange and will order a fourth newbuild vessel in anticipation of growing demand.
In a February 3 update Fred Olsen Windcarrier (FOWIC) said it would seek to raise around €150 million (£126m) in a listing, in part to fund a fourth newbuild vessel for its installation fleet.
Parent company and Fred Olsen owner Bonheur said it would remain a long-term majority shareholder and has pre-committed to subscribe for €25m (£21m) in the IPO.
FOWIC said it had received “significant anchor interest” from Nordic institutions, international sector specialists as well as other local and international investors.
The Oslo-headquartered company installs offshore wind turbines and provides wind operations and maintenance services, and currently operates three purpose-built transportation and installation (T&I) jack-up vessels
Since delivery of its first vessels the company says it has installed approximately 20% of all offshore wind turbines globally with the exception of China, and with an established client base, describes itself as a “first mover” in new markets outside Europe.
As of January 2022, it said total revenue backlog stands at approximately €355m (£297m), around 18% of which is options.
Given the anticipated increase in offshore turbine size, FOWIC is currently undertaking an investment program for its three existing vessels to future-proof them for next-generation installation projects.
Upgrades, including a new 1,600-tonne crane and additional deck space, are now being fitted to its Bold Tern vessel, with expected completion in Q2 this year. While it notes a slight delay due to COVID challenges, it said any associated cost are covered by the yard.
Its two remaining vessels will be upgraded in 2024 and 2025 after completion of several planned T&I projects.
FOWIC chief executive Alexandra Koefoed said today: “We are proud of how Fred Olsen Windcarrier over the last decade has been part of shaping what today is a truly global industry through establishing its position as one of the leading wind turbine installation contractors in the world.
“As the activity within this industry is set to further increase in the years to come, we are confident that Fred. Olsen Windcarrier will leverage on its extensive experience and trusted client relationships to further develop our already strong project pipeline.”
Subject to approvals from the Oslo Stock Exchange and the Norwegian Financial Supervisory Authority, the company said it expects its first day of trading within Q1 2022.
It has enlisted Arctic Securities and DNB Markets as joint coordinators and bookrunners for the offering.
FOWIC will make further announcements relating to the IPO in due course.
It follows news in November that Bonheur would create a new Fred Olsen unit tasked with developing floating wind and solar technology.
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