Global Ports going Global
According to the company statement on its website, Global Ports Investments PLC plans to attract funds for strategic projects through share offer on the LSE
“The leading container terminal operator serving Russian cargo flows announces its intention to proceed with an initial public offering of its shares in the form of global depositary receipts (GDRs). The company intends to apply for the admission of the GDRs to trading on the regulated market of the London Stock Exchange. The Global Offer is expected to consist of GDRs representing newly issued shares to raise approximately $100 million in gross proceeds, as well as GDRs representing existing shares sold by TIHL. Following the Global Offer, GPI's free float is expected to be approximately 25% of its issued share capital.”
The company noted that the net proceeds of the offering will be used to fund capital investment programs in the Russian port segment.
Goldman Sachs International and Morgan Stanley are appointed as IPO book runners along with Troika and Deutsche Bank who have recently announced the GPI valuation price at $2.8 billion-$3.3 billion and $2.7 billion-$3.2 billion respectively.
Nikita Mishin, Chairman of GPI’s Board of Directors, said the company decision is driven by a rapid market growth and company expansion plans
"Our decision to list on the London Stock Exchange signals our determination to build on the achievements and successes of Global Ports to date. We hold the number one position in Russian container handling and fuel oil exports and have strong capacity to accommodate expected market growth as well as the potential to expand our current terminal facilities. Furthermore, our growth strategy, backed by an experienced management team, means we are ready to pursue the many opportunities that are available to us in the fast-developing Russian ports industry. We look forward to welcoming new shareholders as we expand our operations and build on our leadership position.”
Drewry Shipping consultants, said global container and freight business will grow significantly and GPI operates in strategically important areas where volumes of trade will skyrocket
“Total Russian container market grew from approximately 748 thousand TEUs in 2000 to 4.126 thousand TEUs in 2010 demonstrating a CAGR of 18.6%. The Baltic ports operated by GPI are located close to Russia’s major consumption centers, including Moscow. Ports of the Baltic Sea Basin handled 68% of Russian container traffic. We expect the container market in Russia to grow by circa 25% in 2011 and Russian container volumes to grow at a CAGR of 18.8% between 2010-2013.”
Alexey Zhukov, analyst from LoginFX said that Global Ports shares should have a huge interest from investors
“The company’s latest financial results were astounding with increasing profit figures. The IPO success is underpinned by growth of volume of operations and low risk commitments. Assuming favorable market conjuncture and well organized IPO the company might raise around $1.5 billion with IPO show expected in Autumn or at the beginning of the next year.”