John Fredriksen’s Flex LNG has moved a step closer to a listing in the US after it publically filed a registration statement on Form 20-F with the US Securities and Exchange Commission (SEC).
The company said the listing on the New York Stock Exchange (NYSE) is expected to commence after the SEC completes its review process.
Following the listing, Flex LNG’s ordinary shares will be listed for trading on both the NYSE and the Oslo Stock Exchange under the ticker FLNG.
A US listing will see it join fellow Fredriksen companies Frontline, Golden Ocean, Ship Finance International and Seadrill in New York.
Last month TradeWinds reported that Flex LNG had filed a draft registration with US regulators to float in the world’s largest capital market.
However, the listing will not end New York’s long wait for a shipping IPO as Flex will not be issuing new equity in connection with the listing.
“There has not been a shipping IPO in the US since the summer of 2015. Now we do it Spotify/Slack style on the basis the $300m we raised last October,” Flex LNG chief executive Oystein M. Kalleklev told TradeWinds.
“A direct listing doesn’t require issuance of new shares, is considerably cheaper and has a higher level of deal certainty as we are not dependent on raising more equity,” he said.
“Being listed in the US, Flex LNG will gain access to an attractive equity market when it comes to depth, scale and liquidity, which will make the company with its unique position and business strategy, an attractive investment for those seeking exposure to a transformative LNG landscape.”
Flex LNG has four ships on the water and will take delivery of two more this year, five in 2020 and the final two newbuildings in 2021.
The company recently completed a sale-and-leaseback deal with Hyundai Glovis for a pair of modern vessels as part of a $550m financing package.
Flex LNG, which is eyeing a US listing, valued the 10-year transaction to refinance bank debt on the two ships at $420m.
Kalleklev said the deal secured long-term financing at “attractive terms” and would boost the company’s cash position by more than $100m.
