Marine Link
Monday, December 17, 2018

Hapag Lloyd IPO Goes Ahead, Priced at Low End of Revised Range

Maritime Activity Reports, Inc.

November 3, 2015

Photo: Hapag-Lloyd

Photo: Hapag-Lloyd

German shipping group Hapag-Lloyd priced its initial public offering (IPO) at the low end of a revised range, giving the group a market capitalisation of about 2.4 billion euros ($2.6 bln) or less than half the original target.

Hapag-Lloyd shares were sold at 20 euros ($21.92) apiece, the German shipping company said on Tuesday, confirming an earlier Reuters report.

The company had originally targeted a market cap of more than 5 billion euros, but in wobbly markets offered shares for 23-29 euros each.

Weak demand later prompted it to postpone the IPO, trim the number of shares on offer and lower the price range to 20-22 euros.

Several large investors had cancelled share orders after a profit warning from peer Maersk rocked already jittery markets.

Maersk Line, the world's largest container shipping company which transports a fifth of all goods on the busiest routes between Asia and Europe, has been hit by overcapacities and a slump in freight rates.

Hapag-Lloyd is also suffering from the slowdown in global trade, but it is less exposed to the Asia-Europe route than Maersk and other peers as it focuses on the Europe-North America routes, which have benefited from a strong U.S. dollar.

Amid volatile markets, several other German groups recently curbed their capital-raising ambitions, including plastics maker Covestro and automotive supplier Schaeffler.

Real estate Corestate cancelled its IPO on Tuesday.

Hapag-Lloyd raised around $300 million from selling just over 13 million new shares, while shareholder TUI offered 2 million shares in an overallotment option.

Part-owner Klaus-Michael Kuehne and Chilean partner CSAV placed orders worth $30 million each.

Hapag-Lloyd plans to make its market debut in Frankfurt on Friday.


($1 = 0.9126 euros)

(Reporting by Arno Schuetze and Alexander Hübner; Editing by Georgina Prodhan and Susan Fenton)

Maritime Reporter Magazine Cover Dec 2018 - Great Ships of 2018

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News