Alphaliner: Hapag-Lloyd’s IPO Value Set Too High

  • Business & Finance

The prospects of German shipping company Hapag-Lloyd of securing USD 5.5 billion within its initial public offering (IPO) plans are low, according to shipping industry analyst Alphaliner.

“CSAV, which owns 34% of Hapag-Lloyd’s share capital, has a market capitalisation of only USD 977 million based on its current share price on the Chilean stock exchange. This implies a market valuation of less than USD 3 billion for Hapag-Lloyd,” Alphaliner said.

Hapag-Lloyd is pushing ahead with its IPO plans as it aims to bolster its financial position and has mandated investment banks Deutsche Bank, Goldman Sachs and Berenberg to lead what is estimated to be a USD 5.5 billion transaction.

Hapag-Lloyd’s main shareholders – CSAV, Kϋhne and HGV-intend to launch the IPO by December 31, 2015.

However,  the IPO may be postponed to 31 December 2016 if market conditions are unfavorable, in which case the shareholders would seek alternative financing opportunities.

The IPO proceeds would be directed at covering of the carrier’s financial debt that stood at EUR 4,124 billion at the end of March.

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