Hapag-Lloyd IPO to Go Ahead Amid Depressed Market
FRANKFURT, Nov 3 (Reuters) – German transport group Hapag-Lloyd priced its preliminary public providing (IPO) on the low finish of a revised vary, giving the group a market capitalisation of about 2.4 billion euros ($2.6 bln) or lower than half the unique goal.
Hapag-Lloyd shares had been offered at 20 euros ($21.92) apiece, the German transport firm mentioned on Tuesday, confirming an earlier Reuters report.
The firm had initially focused a market cap of greater than 5 billion euros, however in wobbly markets supplied shares for 23-29 euros every.
Weak demand later prompted it to postpone the IPO, trim the variety of shares on provide and decrease the value vary to 20-22 euros.
Several massive buyers had cancelled share orders after a revenue warning from peer Maersk rocked already jittery markets.
Maersk Line, the world’s largest container transport firm which transports a fifth of all items on the busiest routes between Asia and Europe, has been hit by overcapacities and a stoop in freight charges.
Hapag-Lloyd can also be affected by the slowdown in international commerce, however it’s much less uncovered to the Asia-Europe route than Maersk and different friends because it focuses on the Europe-North America routes, which have benefited from a robust U.S. greenback.
Amid risky markets, a number of different German teams not too long ago curbed their capital-raising ambitions, together with plastics maker Covestro and automotive provider Schaeffler.
Real property Corestate cancelled its IPO on Tuesday.
Hapag-Lloyd raised round $300 million from promoting simply over 13 million new shares, whereas shareholder TUI supplied 2 million shares in an overallotment possibility.
Part-owner Klaus-Michael Kuehne and Chilean associate CSAV positioned orders value $30 million every.
Hapag-Lloyd plans to make its market debut in Frankfurt on Friday. ($1 = 0.9126 euros) (Reporting by Arno Schuetze and Alexander Hübner; Editing by Georgina Prodhan and Susan Fenton)
(c) Copyright Thomson Reuters 2015.
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