Ocean Tankers Holdings PCL aims to raise about USD 13.38 mln from the initial public offering (IPO) that starts today in the first such issue of a new company to list on the Cyprus Stock Exchange in two years.
The company, presently privately owned by the Michael Ioannides Group and its affiliates, has a fleet of three double-hull tankers under the Cypriot and Maltese flags and the proceeds of the issue, that will reduce the principal shareholder’s stake to just below 70%, will help the company buy three or even four more ships.
Ocean Tankers has applied to list in the Maritime Sector of the stock market and will take advantage of the merging of the Cyprus exchange with the Athens Stock Exchange in a unified trading platform within the next month or so in order to attract new investors.
The issue is for 24,328,756 new shares of nominal value of US 40c, offered at US 55c each, of which 21.33 mln shares worth USD 11.73 mln will be offered to institutional investors and 3 mln new shares worth USD 1,65 mln to the general public.
Michael Ioannides, the founder of the Group that includes the Admibros ship management company, is confident of the issue’s success as all new shareholders will be able to benefit from any dividend paid for 2006.
He believes the company is in a position to remain at the forefront of tanker chartering as the strict regulations for the outright ban of single-hull vessels within European Union and U.S. waters kicks in on January 1, 2007. At present, only 20% of the worldwide tanker fleet is believed to comprise double-hull ships and Ocean Tankers hopes to position itself well in this area.
The company has already reported a profit of just above USD 1,103,189 in the unaudited first half results for 2006, with a dividend of US 2c, after reporting a loss of USD 1,1 mln in the second half of 2005, its first period of full operations.
Turnover more than doubled from USD 2,2 mln in the second half of 2005 to USD 4,5 in the first half of 2006, taking advantage of the rising demand for worldwide fuel supplies that increased business for the company that does not suffer from seasonality handicaps nor is it affected by regional conflicts or political crises.
After the issue, that closes on October 26, the company’s market value is expected to be USD 44.45 mln for 80.82 mln shares.
CISCO have been appointed the IPO advisors and Moore Stephens have just been hired as the new auditors from the beginning of October.
