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German shipping line Hapag-Lloyd is planning to raise $500 million in a stock market flotation, the company said Monday.
The globe’s fourth largest container liner intends to sell new shares worth $400 million, while two existing shareholders — Kuehne Maritime and CSAV — are placing orders of $50 million each.
"This move will give us better access to the capital markets which will enable us to further invest in our business to become more competitive," said Hapag-Lloyd Chief Executive Rolf Habben Jansen.
The company, which may be valued at more than $5.6 billion in the IPO, is the latest German company to announce plans for an initial public offering in recent days, following automotive supplier Schaeffler, Bayer's plastics business Covestro, building
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materials maker Xella and online classifieds group Scout24.
The companies are seeking to take advantage of robust equities markets, but Hapag-Lloyd has adjusted its IPO volume in response to recent market wobbles, sources familiar with the deal said.
"Hapag's shareholders opted to float the smallest possible stake to avoid offering more than investors are willing to buy and having to scrap IPO plans," said one source.
IPOs with a volume of less than 5 million euros are generally regarded as providing too little liquidity and are therefore avoided if possible.
For more of the Reuters story: www.reuters.com
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