Marine petroleum transportation specialist Latvian Shipping Company (LSC) hopes to raise EUR 80 million via an initial public offering (IPO) on the Riga Stock Exchange in the first half of 2016.
The Supervisory Council of LSC has supported the Management Board’s proposal to raise the equity capital in the IPO.
LSC is looking to double its share capital and raise equity of EUR 80mn in order to pay down existing debts due in 2016 and 2017. The LSC Management Board believes a share capital raising would achieve this and place the company in a stronger position.
The IPO is subject to approval by a shareholders meeting planned for April 2016. A successful float would be the first on the Latvian bourse in over a decade.
Meanwhile, the company’s ownership has undergone some changes recently, following oil trade Vitol
Group’s recent controversial acquisition and subsequent delisting of Ventspils Nafta (VN). VN owns a 49% stake in LSC.
LSC ranks among the biggest vessel owners in the segment of medium and handy size tankers, with a “leading position in terms of transported amount of petroleum products among similar companies in Northern Europe
,” the company said in a statement.