BW Group-owned product tanker company Hafnia is set to list on Oslo Stock Exchange's main board on Thursday.
The company said the board of the exchange approved its application submitted on 23 April.
Hafnia had a market capitalisation of NOK 9.015bn ($868m) on Wednesday as its stock slid 2.21% to NOK 24.35 each.
The Mikael Skov-led owner is being transferred from the Oslo Axess board, where it listed last November, raising $230m.
"The first day of trading of the shares in the company on the Oslo Stock Exchange is expected to be on 30 April," it said.
Natural target
To make the main list, companies must have a market capitalisation of at least NOK 300m and a minimum of 500 shareholders, and at least 25% of the share capital has to be owned by the general public.
“The Oslo Stock Exchange is the natural target for larger companies with a long history and a substantial shareholder base,” the Oslo exchange says on its website.
The move is being made at a time of record rates for product carriers, driven by their increasing use for oil storage.
It is thought Hafnia has secured several ships on long-term floating storage contracts, including the 76,000-dwt BW Zambesi (built 2010) fixed to Indonesia’s Pertamina for six months, while the 110,000-dwt LR2 BW Galatea (built 2019) has reportedly been chartered out to Clearlake for 12 months at $33,000 per day.
Cleaves Securities has a target price of NOK 34 on the stock, a rise of 40% from where it is now.
Fleet fully financed
Fearnley Securities said it expects the company to report $0.19 in earnings per share in the first quarter, but it could pocket $0.45 to $0.55 per share in the following quarter.
Assuming a 60% payout to shareholders, that would mean investors would get NOK 3 to 4 [$0.28 to $0.37] in the first half, the investment bank said.
"Current steel values are NOK 30 per share, growing to nearly NOK 40 per share by end of June [on the] basis [of] these earnings," Fearnley said.
Hafnia operates a fleet of 174 vessels in pools, including newbuildings, of which 102 are owned or chartered-in.
It has six owned LR2s, 27 owned and nine chartered-in LR1s, 41 owned and six chartered-in MRs and 13 of its own handysizes.
Its net asset value is more than $1bn and the fleet is fully financed with a strong balance sheet providing financial flexibility, it said.
Net debt stood at $1.35bn at the end of 2019.
