(Bloomberg) What looks set to become Denmark’s biggest initial public offering in more than a decade may add to pressure on the krone at a time when the exchange rate is already testing levels last seen during a 2015 speculative attack.
With 15 percent of Dong Energy A/S slated to be sold to the public next month, the potential demand from offshore investors could have a palpable effect on Denmark’s exchange rate, according to Danske Bank A/S, which is already advising pension fund clients to hedge for krone strength in the forward market. And with the threat of market disruptions rife ahead of Britain’s June 23 vote on European Union membership, there’s likely to be plenty of demand for assets sold from safe-haven economies, Danske predicts.
