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Research

Hexicon: Financing risks overshadows potential rewards

By Lucas MattssonAnalyst
Hexicon
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Given the ongoing weak market conditions, which have slowed the pace of divestment processes, and the continued lack of news regarding regulatory approval for the change of control of the key MunmuBaram project, we believe that operational risks have increased. In addition, the falling share price has increased financing risks (equity issue 1-2x current market cap expected in the next ~3-6 months) and is starting to cause uncomfortably high volatility in expected returns and dilution, and we wait for these risks to subside. 

Hexicon is a project developer in offshore wind power, with the goal of opening up new markets in countries with deep water. The company is also a technology provider with TwinWind, a patented floating wind design. The technology enables increased use of global wind power and can thus contribute to increased access to renewable energy. Hexicon operates in several markets in Europe, Africa, Asia and North America.

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