DNB Markets’ investment banking unit has named Nicolay Dyvik global head of shipping.
The Norwegian bank has created a new position to meet the increasing demand for investment banking services from the shipping sector.
“We are thus reintroducing the global head position for shipping to enhance our coordination and execution capabilities,” Peter Behncke, global head of investment banking, told TradeWinds.
“With the knowledge and skills of Nicolay combined with his cooperative attitude towards collaboration, I am happy Nicolay has taken on the challenge,” Behncke added.
Dyvik comes from the position of head of shipping coverage of Europe, the Middle East and Africa.
Before joining the investment banking unit in 2020, he was the head of shipping equity research at DNB Markets.
According to Behncke, Dyvik will be responsible for the investment banking part of DNB Markets’ shipping franchise, including capital market activities such as equity capital markets and debt capital markets, merger-and-acquisitions advisory and be involved in the associated loan activities such as acquisition and bridge financing.
DNB Markets’ global shipping corporate finance team has about 10 dedicated employees across Oslo, New York and Singapore.
Dyvik will cooperate with DNB Bank global head of shipping Christos Tsakonas to assist and advise clients.
“We observe that shipping companies and shipowners are increasingly leveraging the global capital markets including Oslo, London, Singapore and New York for activities such as IPOs and capital market activities including ECM and DCM,” Behncke said.
“Similarly, we see global interest from shipowners and financial sponsors including private equity and infrastructure funds when we are involved in M&A, which makes it important to have a global presence,” he added.
DNB Markets has been involved in several high-profile transactions.
Since 2021, it has executed 13 M&A transactions with a total deal value of about $20bn.
Last year, DNB Markets advised Frontline on the acquisition of 24 VLCC from Euronav.
It also helped Cadeler with the merger with Eneti.
“These are two good examples of transactions that we would like to do more of, where we can provide advisory services and leverage the bank’s balance sheet to reduce transaction risk to create good outcomes for important clients of the bank on both sides of the transaction,” Dyvik told TradeWinds.
Recently DNB Markets has assisted BW Group in secondary transactions in Navigator Holdings, Hafnia and BW LPG.
“We are in a shipping super cycle not seen since the 2004-2008 boom, but this time around just a few segments have large orderbooks, such as LNG, container and car carriers, relative to overall demand outlook, Dyvik said.
“With share prices at all-time highs across many sectors, backed by strong rates and asset values at decade highs, we have seen a large increase in the secondary sale of shares,” he added.
According to Dyvik, high rates, strong cash flows, and limited new investments have led to strong balance sheets and ample cash positions in many shipping companies resulting in less need for new equity.
“Over the last six to 12 months, however, we have started to receive more enquiries from shipowners who would like to IPO their companies to increase strategic and financial flexibility to fund accretive growth opportunities,” he said.
DNB Markets has often seen that having a company’s stock publicly traded, improves its ability to grow through M&A.
Dyvik pointed out that it’s on the M&A side where DNB Markets has been the most active in recent years and where it can scale on the full breadth of its product offering.
“We are currently involved in several M&A transactions including structured sell-side processes, bilateral M&A and public M&A,” he said.
