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Maritime Capital Shipping withdraws IPO plans, in move reflecting poor global market conditions.
"Equity markets have closed for IPOs, regardless of the underlying fundamentals of the company," Hong Kong-based dry bulk ship owner's CEO Harris says in statement.
"I'm not surprised, to be honest," says UOB Kay Hian's Nancy Wei. "The stock markets are weak, just not conducive to IPO listings. In most cases there''s a gap between what the vendor wants and what the fund manager's willing to pay."
Many recent new listings tanked on debut and are still trading below their respective IPO prices. Market has also been wary of stocks directly related to BDI, which has been on downtrend of late and hurting players like STX Pan Ocean.
Pricing is scheduled on Jul 3, and shares will be offered to retail investors the following day. The stock begins trading on Jul 11. Maritime Capital, run by former Pacific Basin Shipping Ltd chief Mark Harris, wants to almost double its fleet size to as many as 30 vessels, according to the company's prospectus. Rising demand from emerging countries, such as China and India, for iron ore and coal have increased the need for more vessels to support economic growth.
The shipping line's net profit was US$15.2 million in the first quarter, the prospectus said. It expects a full-year profit of US$77.3 million and sales of US$144.8 million.
The Hong Kong-based dry-bulk ship owner will have a market capitalization between US$573 million-US$645 million after the IPO.
not sure is it the right time for IPO at this period? As most IPO conducted lately were not promissing, lack of support? moreover, shipping industry generally not performing well. if market turn good, still can try the luck loh.
Maritime Capital Shipping plans to sell its shares at an indicative price range of $1.24 to $1.46 a share, a source briefed on the deal told Reuters.
The Hong Kong-based shipping firm is engaged in the transport of dry bulk commodities and has a fleet of 18 small vessels, which it plans to expand to as much as 30 by 2009 with cash raised from the sale of the shares, according to its prospectus.
Some of its existing shareholders -- mostly offshore investment funds -- will sell shares, while the company will also sell new shares in the IPO.
Singapore's capital market has been luring shipping and offshore oil services companies, boosting its status as one of Asia's premier maritime centre.
But shipping companies are trading at a discount to the broader market because of concerns about global economic growth and slower trade.
Maritime Capital Shipping on Tue filed a prospectus with MAS for an IPO. The prospectus did not indicate the size of the offering, but people with knowledge of the deal said it will include about US$200 million in new shares and US$100 million in shares held by current investors. Those people said the deal is expected to price July 2.
This is a bad time for IPOs... no one is interested anymore.
The offer will consist of a primary offering of around US$200m in new equity along with US$100m in shares held by the firm's current owners, one of the people said.
"They're looking at US$200m in equity and there's room for about US$300 million in debt," the person said.
"They can probably buy around 10-12 new ships which would grow their fleet to 30 vessels by the end of '09."
Maritime Capital Shipping Ltd, a Hong Kong-based dry bulk shipper, aims to raise roughly US$300 million in an IPO, a person familiar with the matter told Reuters.
The company kicked off pre-marketing on Mon, and plans to begin bookbuilding on Jun 20 ahead of pricing in early Jul in a deal handled by UBS