Hapag-Lloyd Completes Public Offering With Lowered Price

by Ship & Bunker News Team
Thursday November 5, 2015

Hapag-Lloyd Tuesday said it has raised its projected $300 million from its IPO, selling 15 million shares for €20 ($22) per unit.

The company said that the money would go towards investing in new ships and containers. 

While the results met the company's most recently announced forecasts, both the final amount raised and the share pricing are drastically lower than what was originally expected when rumours of a Hapag-Lloyd share listing first began circulating. 

The company had been intending to raise $500 million at €23-€29 ($26-$32) per share, a price band which itself was already reduced. 

The listing however, was derailed late last month after Maersk Line announced a profit guidance downgrade due to a weakened container shipping sector, prompting Hapag-Lloyd to slash its prices in a bid to win back investor confidence. 

If the company's share prices remain low however, existing shareholders may see valuations on their existing stake take a large hit, Alphaliner warned in its weekly newsletter.

Majority shareholder Compañía Sud Americana de Vapores (CSAV) reportedly faces booking an impairment loss of €953 million ($1 billion) while TUI faces a potential loss of €192 ($209 million).

Shares are expected to begin trading on the Frankfurt Stock Exchange and the Hamburg Stock Exchange beginning November 6, 2015. 

Ship & Bunker had previously reported that even before the double price cut, analysts had considered the offering a good buy "given much of the underlying sector disappointment has been discounted in the price."

Ship & Bunker News Team
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