Hapag-Lloyd Set to Raise USD 500m from IPO This Year

zoom German container shipping company Hapag-Lloyd AG has revealed its plan to list its initial public offering (IPO) on the Frankfurt Stock Exchange and the Hamburg Stock Exchange in 2015. Hapag-Lloyd expects total gross proceeds in the equivalent Euro amount of USD 500 million from the IPO. As informed, a total of USD 400 million will stem from the sale of newly issued shares to institutional and retail investors. The companys main shareholders Kuehne Maritime (Kuehne) and Compania Sud Americana de Vapores (CSAV) are participating in the IPO with USD 100 million by placing cornerstone orders of USD 50 million each. The offer will also comprise additional shares from TUI and a market standard greenshoe, the company added. Hapag-Lloyd plans to use the IPO proceeds for further investments in ships and containers to further strengthen its capital structure, long-term growth and profitability.  According to Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd, the move will give the liner company better access to the capital markets which will enable us to further invest in our business to become more competitive. Earlier this year, media reports said that Hapag-Lloyd was pushing ahead with its IPO plans as it aims to bolster its financial position and that it had mandated investment banks Deutsche Bank, Goldman Sachs and Berenberg to lead what is estimated to be a USD 5.5 billion transaction. The IPO proceeds were expected to be directed at covering of the carrier’s financial debt that stood at EUR 4.124 billion at the end of March. However, shipping industry analyst Alphaliner said that the prospects of Hapag-Lloyd being able to secure USD 5.5 billion within its IPO plans were low amid unfavorable market conditions.