Hapag-Lloyd Lowers IPO Price Again

by Ship & Bunker News Team
Monday November 2, 2015

Hapag-Lloyd is lowering the price of its IPO once again after investors became wary following Maersk Line's pronouncement about the dismal container shipping sector, Bloomberg reports. 

The offering price will now reportedly be reduced to €20-€22 ($22-$24) from its already reduced price of €23–€29 ($26-$32). 

The new listing will now purportedly offer 15.2 million shares that include 13.2 million in a capital increase, with part-owner TUI AG having also reduced the number of shares it is seeking to sell to 1.9 million from the original 4.2 million. 

According to reports, a term sheet distributed by Hapag Lloyd on Friday has stated that the new prices will allow the shares on offer to match demand. 

Analysts had previously given their approval of the IPO price when it had only been reduced once, having commented at the time that the weakened market had already been accounted for in the updated price. 

However, it was reported earlier that investors became nervous after Maersk Line lowered its profit guidance for the year, citing ongoing weak freight rates. 

Ship & Bunker reported last month that Hapag Lloyd had already pushed its IPO back by one week in response. 

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com