Heidmar has outlined its expansion plans ahead of a Nasdaq listing.
The pools player and ship manager believes it will boost the fleet from 60 ships now to at least 82 this year, as it adds more bulkers to the existing tanker roster.
The Greece and UK-based company announced on Monday a merger with blank-cheque company Home Plate Acquisition Corp that will see it take over the listing of its new partner.
The deal values the combined entity at $261.4m.
Speaking on a conference call, chief executive Pankaj Khanna said an associated cash raise of between $55m and $60m will allow it to develop the dry cargo operation and shipbroking activities, as well as moving into technical management alongside commercial management.
He said market complexity is rising with the introduction of new fuel efficiency legislation.
“With technical management we will also be able to assist owners with retrofits required to meet decarbonisation goals,” he added.
In the past, clients have asked about technical management and Heidmar directed them to other third-party managers.
The 42 staff are spread across Athens, London and Singapore, and Khanna revealed an imminent office opening in Dubai, plus Houston, Texas, later.
He sees an opportunity to use the company’s four decades of dry cargo expertise to add bulkers.
In January, it revealed a move into dry bulk, with eight vessels handled by its Athens office.
“It is a highly fragmented market and there are hardly any pools,” Khanna told the call.
Prime pool candidates
Heidmar is targeting the more than 2,200 owners who control fewer than 15 vessels each.
He described these as “prime candidates” for pool operations.
The company has been doing sale-and-purchase work for clients for two years, but is now setting up a desk to “work this in a more concerted fashion”, Khanna added. “There’s enough room for us to play a role in cooperation with bigger houses.”
Heidmar also takes ships in on time charters and makes money by fixing them out for shorter terms.
Some vessels are syndicated out to financial institutions or other shipowners, and Heidmar earns fees from operating them.
Currently, three vessels are chartered in, including one from Trafigura, and two are syndicated.
Heidmar’s five pools operate 39 tankers, including 13 VLCCs for two owners, five suezmaxes, 10 aframaxes and MRs and smaller clean tankers. One other VLCC is under management, along with four suezmaxes, four aframaxes and product tankers.
Khanna revealed that the company managed more than 15 Ocean Tankers ships on behalf of liquidators for more than a year during a bankruptcy process that began in 2021.
He said operating the ships “greatly enhanced” their values.
The aim is to be “a one-stop solution for tankers and bulkers in the future”, Khanna concluded.
Net profit was $16.1m in 2022, with revenue at $24.1m. The company is forecasting earnings of $29.6m this year, with revenue rising to $53.1m.
Existing Heidmar shareholders including Khanna will retain 65% of the merged entity, with Home Plate shareholders getting 9%, the Home Plate sponsor 9% and participants in the listing equity placement 17%.
