Ocean Tankers Cyprus in rights issue to fund 8-ship acquisition

Ocean Tankers Holdings, the only public company quoted in the ‘Shipping’ sector of the Cyprus Stock Exchange, is planning a USD 45 mln rights issue to part fund the acquisition of eight new oil tankers.

Chairman and CEO Michael Ioannides said that an investor road-show is underway for the issue, with a subscription period of December to January 2008.

This is the second time that Ioannides is appealing to the market after the successful IPO that raised USD 13.4 mln to float the company. Since then, the fleet has doubled from three to six tankers of 4,500 to 12,000 tonnes capacity, while two newbuildings are expected to be delivered in the second half of 2008.

The new acquisition of eight recently-built ships with an average age of six years, will double the fleet to 16 vessels, with the new additions having a 15,000 to 20,000 tonnes capacity.

The new ships, that will carry the Maltese flag, are committed to Lukoil for a ten-year charter. The purchase value is set at USD 284 mln, underwritten by ABN Amro.

Revenue and profits too are expected to multiply, from USD 17.8 mln to about 60mln and from USD 3,5 mln to 20 mln, respectively, explained the company’s vice president, George Ioannides.