Hapag-Lloyd gives price range for shares in IPO

The German-Chilean ocean carrier has set a price range of of 23 euros to 29 euros per share and expects gross proceeds of $300 million from its initial public offering scheduled to to begin Oct. 30.    Hapag-Lloyd announced the expected pricing of shares in its initial public offering and said the offering period will begin Thursday Oct. 15 and end on Oct. 27.
   The company said the price range for the shares has been set at 23 euros per share to 29 euros per share (U.S. $26.38-$33.27), with the final offer price to “be determined based on the  bookbuilding process” and published on Oct. 27.
   The offering consists of up to 15,721,035 shares: up to 11,503,197 new shares from a capital increase, up to 2,300,639 existing shares from the holdings of the tourism company TUI, and up to 1,917,1999 from TUI to cover potential over-allotments.
   Two of Hapag-Lloyd’s largest shareholders, Kühne Maritime and Compañía Sud Americana de Vapores, have each agreed to place orders for an additional $30 million in stock.
   Hapag-Lloyd expects gross proceeds of approximately $300 million or 265 million euro will allow it to invest in ships, containers, and strengthen its competitiveness. Total offering size including primary proceeds for Hapag-Lloyd, TUI shares placement option and potential over allotments could amount up to approximately $410 million or abouot about 362 million euro.
   The shares are expected to begin trading on the Frankfurt and Hamburg stock exchanges on Oct. 30.
   A public offering is being made in Germany and Luxembourg and in private offerings outside those two countries.
   Berenberg, Deutsche Bank and Goldman Sachs International are acting as “joint global coordinators” and joint bookrunners. Citigroup, Credit Suisse, HSBC and UniCredit have been mandated as additional joint bookrunners, while DZ BANK, ING and M.M.Warburg & CO will act as co-lead managers. As part of the envisaged IPO, the three joint global coordinators are providing a new credit line of $125 million.