German wind turbine manufacturer Senvion increased its capital to approximately €62.5 million, under exclusion of shareholders' preemptive rights, the company announced Tuesday.
According to a statement posted on the company's official website, Senvion intends to use net proceeds, in particular, to capture growth opportunities and to fund its expansion in new markets such as India.
Manav Sharma, acting chief executive officer and chief financial officer at Senvion, said the company had seen almost a 400 percent order increase in new markets year-over-year and expected a 20-40 percent revenue growth in 2019.
"We are meeting or even exceeding our own market share targets in key regions," he added.
A total of €62.5 million has been committed for the placement of new shares yielding gross proceeds of €25 million by way of a backstop obligation, according to the statement.
"Senvion's major shareholders, affiliates of funds managed by Centerbridge Partners, have agreed to purchase new shares in the offering yielding gross proceeds of €37.5 million at the placement price," the company said.
Senvion has significantly increased activities in new markets like India, Australia, Spain and South America.
In 2018, the company announced orders totaling about 680 megawatts in India, with potential to develop an even bigger order pipeline in the next few quarters.
"Given the already overbooked capacity in India, an expansion is needed to reflect the ongoing growth oriented market development," Senvion said.
This also applies to markets such as Australia, Chile and Argentina, where Senvion has been increasing its market share with an order intake of over 1.3 gigawatts and sees great potential for future growth, it added.
By Gulsen Cagatay