EMEA News
Hapag-Lloyd Gets Lukewarm Market Debut
Hapag-Lloyd's saw shares fall to their initial €20 offering price almost immediately upon opening in an underwhelming debut on the stock market, in what was said to be a reflection of the markets' doubts over the container shipping segment, Reuters reports.
"It was a tough fight," admitted Hapag-Lloyd CEO Rolf Habben Jansen after ringing the opening bell at the Frankfurt Stock Exchange.
The company's IPO had suffered from multiple setbacks, having been forced to reduce its target amount raised once and its share price band twice.
Some investors also balked at the last minute after Maersk Line released a profit guidance downgrade last month, leading Hapag-Lloyd to delay its IPO for a week while it attempted to win back confidence.
According to reports, the IPO saw orders that were worth less than twice the amount on offer.
"It was a restructured deal, so buyers could be sure to get shares and did not put in inflated orders," an unnamed source said.
Ship & Bunker reported last week Hapag Lloyd's IPO had raised the forecasted $300 million, with shares priced on the low end of a price band at $22 per unit.
