Norway's Torvald Klaveness Group is planning a public listing of its newly established Klaveness Combination Carriers (KCC) before the end of next year, it has revealed in a prospectus to first raise up to $70m in fresh equity.
KCC will initially be quoted on the Oslo Stock Exchange's over-the-counter (OTC) list, with the intention of going for a full listing on a recognised exchange by the end of 2019. The initial share issue for between $45m and $70m is being handled by Clarksons Platou Securities.
The company plans to use the new funds to declare options for more 83,000-dwt combination carriers at Jiangsu New Yangzi Shipbuilding in China, where KCC currently has five vessels on order with scheduled delivery slots between the third quarter of 2020 and the first quarter of 2021.
The additions of the CLEANBUs [combination carriers] to the fleet will further strengthen KCC’s competitive position in the caustic soda market and facilitate the expansion into the CPP market
Klaveness has nine combination carriers trading and could increase this figure to 18 vessels if it declares all of its options.
Biggest in sector
If the last four options — costing $46.5m each — are exercised, it will make the company the biggest owner and operator of combination carriers. The first ships in the series reportedly cost $26m to $27m each.
Group president and chief executive Lasse Kristoffersen says Klaveness is considering whether to install exhaust scrubbers on the newbuildings, but insists no decision has yet been made. Current investors, management and previous investors will subscribe for $25m of the new issue.
KCC managing director Engebret Dahm said earlier this week: “The additions of the CLEANBUs [combination carriers] to the fleet will further strengthen KCC’s competitive position in the caustic soda market and facilitate the expansion into the CPP market."
Formed earlier this year through a $32m share sale to existing investors, KCC is owned by the Klaveness Group, with external owners including Bergen-based Espen Galtung Dosvig.
Majority share maintained
The group's vessel-owning company — Klaveness Ship Holding — currently owns 70% of the shares in KCC and will maintain a majority after the issue. This outfit also has a fleet of eight containerships with capacities between 1,700 teu and 3,100 teu.
Klaveness Ship Holding made a pre-tax profit of $6.2m in the first six months of the year, compared with an $8.3m loss in the same period of 2017. Freight revenues increased to $56m, from $28m.
In addition, Klaveness operates 110 bulkers from 50,000 dwt to 100,000 dwt in the Bulkhandling and Baumarine pools.
The group is owned by Trond Harald Klaveness and his family, while Kristoffersen has a smaller stake.
