Abstract:
In this paper, we will discuss about
Vestas IPO. Vestas Wind Systems is the largest wind turbine producer in the world. It launched its initial public offer (IPO) in 1998 which has been running well in the global stock market for several years.
Vestas Wind Systems, a high speed transmission equipment producer based in Denmark, announced its initial public offer (IPO) on March 1998.
Vestas, formed in 1898, is the largest provider of wind turbine with 28% market share. It has established over 33,500 wind mills all over the world and also produces wind turbines.
Vestas released 300 million new shares, worth 271 million dollars, for the public. The price ranged between 5.38 to 7.08 dollars per share.
On its first trading day Vestas' IPO performed extremely well, the shares were oversubscribed 8 times.
The company targeted to collect 2.12 billion dollars through public issue.
The company currently has more than 11 thousands employee and the annual sales amount for 2006 financial year was 5085 million dollars.
During the financial year of 2007, Vesta's initial public offer had been very well by the European stock markets.
Reasons Behind the IPO:
- The company wanted to open several new production units.
- Vistas aimed to finance its research and development unit so that it could hold the leading position through continuous innovation.