IPOs and Shipping

While the freight market bounces along, ever more emphasis is given to financial topics in shipping, whether it is about JVs between vessel managers / operators and private equity funds / institutional investors, potential exit strategies and market consolidation, sale of shipping loans and the European banks’ preoccupation with the stress tests and AQRs (Asset Quality Review).

In a recent article in The Bunkerspot magazine, Mr Chris Thorpe with Brick Investment Partners discusses IPOs options for shipping companies.

Basil Karatzas and Karatzas Marine Advisors have been quoted in the article.

 

Please access the article here!

2014 06JUN BUNKERSPOT Public Profile_HL


 

© 2013-2014 Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

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Shipping IPOs: Diamond S Shipping

This past week, the sponsor and primary shareholder of Diamond S Shipping Group, Inc., WL Ross & Co., decided not to proceed with the Initial Public Offering (IPO) due to unfavorable obtainable pricing. The company was planning to issue about 14 million shares at the $14-16/sh range.

Private equity funds have been the rage of the shipping markets recently. The present filing, it is indicative that private equity funds sooner or later will be looking for ways to exit their shipping investments, and the capital markets likely will be the most popular venue. Capital markets may soon be the ‘next big thing’ in shipping as there are already several filings in the US for shipping companies.

The ‘failure’ of Diamond S Shipping to go public at this stage is not a sign that the capital markets are not receptive to shipping companies. Some of the reasons for the ‘failure’ may have been due to circumstances pertaining to this company and issuing, especially concerns about proper pricing, valuation and expectations thereof. There are legitimate concerns that the MR tanker market is getting too crowed – which is affecting pricing; on the other hand, Ardmore Shipping Corporation (ticker: ASC) was successful offering 7 million shares in a follow-on equity offering and raising $90.2 million, still in the product / MR tanker sector, pricing that was in line with the company’s share price – which is at discount on a peer group valuation.

Please note herebelow three articles on the recent developments with Diamond S Shipping from different sources: Shipping Watch, a Copenhagen-based credible shipping trade publication, Bloomberg and the Financial Times. We have had the honor to be quoted in these articles.

2014, March 12: Lukewarm investors canceled IPO of Diamond S, republished from Shipping Watch.

2014, March 12: Wilbur Ross Suspends Diamond S Shipping IPO on Low Price, republished from Bloomberg.

2014, March 13: Ross upbeat after IPO cancelled, republished from the Financial Times.

Diamond S MR Tanker MT "AEGEAN WAVE"

Diamond S MR Tanker MT “AEGEAN WAVE” (Image source: courtesy of Shipspotting)

© 2013-2014 Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

Two more things …

Further to our post last week with links on maritime matters, two more recent links to be added:

Private equity funds deployed more than $5 billion for the acquisition of shipping loans in the last year alone, posted on Bloomberg recently; interesting article about the state and dynamics of the market; apparently the author of the article has been following up the market discussing for a while with people with intimate knowledge of the topic, including our very own Basil Karatzas.

And an additional article from Hellenic Shipping News exploring the basic parameters that private equity funds have to check out early on in any discussions about setting up a Joint Venture (JV) with any shipowners. This is a long subject that needs a follow up article on the next steps once the basic frame has been put in place. Stay tuned.

 

Panama Canal: Now and One Hundred Years Ago - Beaming Out!

Panama Canal: One Hundred Years Ago and Now – Beaming Out!

© 2013-2014 Basil M Karatzas & Karatzas Marine Advisors & Co.  All Rights Reserved.

IMPORTANT DISCLAIMER:  Access to this blog signifies the reader’s irrevocable acceptance of this disclaimer. No part of this blog can be reproduced by any means and under any circumstances, whatsoever, in whole or in part, without proper attribution or the consent of the copyright and trademark holders of this website. Whilst every effort has been made to ensure that information here within has been received from sources believed to be reliable and such information is believed to be accurate at the time of publishing, no warranties or assurances whatsoever are made in reference to accuracy or completeness of said information, and no liability whatsoever will be accepted for taking or failing to take any action upon any information contained in any part of this website.  Thank you for the consideration.

Karatzas Marine Advisors & Co. Wishes You Happy New Year!

The Directors and the Team of

Karatzas Marine Advisors & Co.

Expresses Warmest Wishes to Friends, Clients and Business Associates

All  Around the World

A Most Prosperous, Healthful, Productive, Fulfilling and

Most Successful Happy New Year!

                                                         

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