China’s Seacon Shipping Group is going public and is looking to raise up to $62.26m with a listing on the Hong Kong Stock Exchange.
Seacon plans to issue as many as 125m shares at the price of HKD 3.27 to HKD 3.91 per share ($0.41 to $0.49).
It will use approximately HKD 48m of the funds to expand the company’s fleet, and around HKD 6m to set up overseas offices and expand its ship-management business. The remainder will be used as working capital and for the adoption of digital technology.
According to local agencies, Seacon has met the listing conditions and its listing is scheduled for 29 March.
Several companies were reported to be interested in subscribing to Seacon’s offering, with HKD 129m-worth of stocks set aside for them.
Huzhou Wuxing, a subsidiary of the Finance Bureau of Wuxing District in Huzhou City, Guodian Shipping and Danube Bridge Shipping were named as the potential investors.
Headquartered in Qingdao, Seacon was established in 2012 and has an office in Singapore. It plans to open new offices in Shanghai, Greece, the Philippines and Japan.
According to shipping sources, Seacon currently owns a fleet of 21 vessels that is made up of bulk carriers and tankers. It also has seven bulk carrier newbuildings — four kamsarmaxes, one ultramax, one handysize, and one general cargo ship — under construction at shipyards in China and Japan.
Three of the four kamsarmaxes are being built at Huangpu Wenchong Shipbuilding, while Japanese-owned Tsuneishi Zhoushan Shipbuilding is building the fourth, along with the ultramax bulker.
Imabari Shipbuilding and Murakami Hide Shipbuilding are building the 40,000-dwt bulker and the 13,500-dwt general cargo ship, respectively.
The company will be taking delivery of five newbuildings this year and the remaining two in 2024.
Sources said Seacon’s ship-management division manages around 210 vessels that include tankers, bulk carriers and gas ships. Its clients include Chinese leasing companies, shipyards, domestic and overseas shipping companies.
Seacon was reported to have registered a net profit of $55.4m for the first nine months of 2022 and $40m for 2021.
