Tor Olav Troim’s 2020 Bulkers has won the green light for a listing on the Oslo Axess with its stock expected to start trading on the second-tier market this week.
It comes after 2020 Bulkers raised over $70m from a private placement in May, which set the scene for it to be promoted from the city’s over the counter market.
Magnus Halvorsen, chief executive of the newcastlemax specialist, said the listing would bring increased public awareness of the company and improve liquidity of the stock.
“We believe 2020 Bulkers offers a unique proposition to investors with our newbuilding fleet of eight, scrubber fitted, fuel efficient 208,000 dwt newcastlemax dry bulk carriers,” he said in a statement today.
He calculated that based on the present earnings of $26,400 per day on the Baltic 5TC capesize index would translate to a newcastlemax earning of $37,000 per day on an index linked charter, including “scrubber economics”.
“The earnings potential, in combination with our low cash breakeven level of approximately $14,500 per day gives the company a strong foundation for returning capital to shareholders through dividends once the fleet is fully delivered,” he said.
2020 Bulkers is Troim’s first pure shipowning project and runs to eight 208,000-dwt newbuildings or order at New Times in China.
The first ship will be delivered early next month with the final vessel in the series scheduled to begin trading in May 2020.
The company was initially executed as an asset play but Troim pivoted and instead opted to establish operations and take delivery of the ships.
Another change of direction came earlier this year when initial thoughts for a US stock listing were switched for a more senior listing in the Norwegian capital.
2020 Bulkers pressed ahead with the private placement in May in a purple patch for shipping in the Norwegian system that also saw Hunter Group, Epic Gas and Belships raise funds.
Now it is moving to the Oslo Axess with capesize bulker rates touching the highest levels seen in 2019 and panamax bulkers sporting the largest single-day gains in several years.
