Intra-Asian feeder specialist TS Lines is pressing ahead with an IPO in Hong Kong to raise up to HKD 1.13bn ($145m).
The regional container specialist is looking to float 250m shares at a price of between HKD 3.5 and HKD $4.5 per share, according to a filing with the Hong Kong Stock Exchange.
The final offer price will be determined at the end of the month.
TS Lines has attempted to float on the Hong Kong Stock Exchange on several occasions in recent years.
The company is tapping into strong container markets to appeal to investors after making a gross profit of $7m for the four months ended April this year.
That helped it turn around a gross loss of $33.8m in 2023.
TS Lines plans to use 50% of funds raised, or HKD $448m, to finance two new 7,000-teu vessels ordered earlier this year at Shanghai Waigaoqiao Shipbuilding.
On delivery in 2026 and 2027, the carrier will deploy the two newbuildings in the Asia-Indian subcontinent, Asia-Oceania or Middle East markets.
TS Lines expects to use about 25% of the funds, amounting to HKD 224m, for vessel charter contracts and another 15% for container leasing.
The remaining 10% of the funds will be used for working capital.
Timeline to float
TS Lines stock offer will run from 24 October to 29 October, with trading of the shares expected to begin on 1 November.
Based on a mid-point pricing, the company could raise at least HKD 896m. If the higher end of the pricing is obtained, TS Lines could bag HKD 1.12bn.
The global offering is sponsored by JP Morgan and China Merchants Securities.
Some 90% of the shares will be offered to global investors and the remaining 10% to investors in Hong Kong.
According to Alphaliner, TS Lines is the world’s 20th largest liner company, with a fleet of 101,503 teu and an orderbook of another 64,000 teu.
TS Lines ranks sixth in fleet size among the Asia Pacific Region-focused container shipping companies, transporting 1.46m teu in 2023.
As TradeWinds has reported, TS Lines has ordered six container ships this year.
They include two 4,300-teu container ship newbuildings costing $60m each signed in September at CSSC Huangpu Wenchong Shipbuilding.
In June, the company contracted Shanghai Waigaoqiao to build two methanol-ready 14,000-teu ships as well as the two 7,000-teu newbuildings, with options for two additional vessels of each ship type.
The Shanghai-based shipyard is due to deliver the larger boxships in 2028.
