Deals
The Hidden Value Dong Can Still Unleash After $2.6 Billion IPO
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Europe’s biggest initial public offering of the year started with a 12 percent share gain on its first day of trading. But Dong Energy A/S has some unfinished business that can unlock even more value.
The energy conglomerate, valued at $15 billion after floating about 17 percent in an IPO, needs to sell its oil exploration and production unit to fulfill a goal of becoming a truly green utility company. Dong abandoned its efforts to find a buyer in January. But with a recovery in crude prices, selling the unit next year is now “definitely a possibility,” said Morten Imsgard, an analyst at Sydbank A/S.