The Oslo Stock Exchange (OSE) has launched a robust defence of its operations as it faces losing two big shipping names this year.
Greece's Star Bulk Carriers said in April it was scrapping its Oslo listing due to a lack of trading volumes, while US-based Team Tankers International said it has shareholder support for a delisting.
It also blamed liquidity, as well as the fact that its low valuation made it difficult to pursue mergers, acquisitions and sale and purchase deals.
An OSE spokesman told TradeWinds that generalisations should not be made from the cases of Star Bulk and Team Tankers.
"In Oslo we have many shipping companies with excellent liquidity and high trading volumes," he said.
Many factors involved
"In general, there are a few parameters that drive the liquidity and trading volume of a share on an exchange. Number of shareholders, concentration of ownership on few shareholders and free float are some of the factors."
Star Bulk will retain its other listing in New York.
The OSE explained that for dual-listed companies a certain number of shareholders need stock registered in both markets.
"When we connect to the Euronext trading system, Optiq, later this year, companies listed in Oslo will have access to Euronext’s single order book and the largest pool of liquidity in Europe," the spokesman added.
He said that share valuations are specific to certain shipping segments, not where the share is listed.
Don't blame us
"Low valuation compared to net asset values within certain shipping segments is common on all stock exchanges," he added.
Oslo has gained a reputation as a quick way to a public listing for shipowners.
But owners may find requirements more stringent when they have actually started trading shares there.
TradeWinds has reported that stricter reporting rules in Oslo, particularly in relation to buying back and selling shares, was an important factor in Star Bulk's decision.
"Oslo requires different disclosures from the US, and Star Bulk had to satisfy both regimes. They considered it a pain," one source said.
The source added the requirement to disclose share transactions immediately, rather than in a quarterly filing, made share buybacks and at-the-market (ATM) offerings harder to do at an "advantageous price".
The OSE spokesman said: "Historically, shipping companies listed in Oslo have been able to raise more capital compared to other marketplaces. We have also experienced a steady stream of new companies to our marketplaces."
Regarding regulations, he said the listing and reporting requirements follow European Union law.
In certain aspects, EU regulations differ from US ones. Some regulations are meant to ensure transparency, such as the share buyback disclosure obligations cited by sources in relation to Star Bulk, he added.
Last month, John Fredriksen-backed Seadrill said it was moving to the over the counter (OTC) exchange in Oslo as part of its restructuring. However, it is pulling its New York listing.
