Diamond S IPO pulled

Mar 14 2014


US-based investor Wilbur Ross has confirmed to Bloomberg that the initial public offering (IPO) for tanker concern Diamond S Shipping Group will not go ahead due to the suggested price being too low.

The final proposal by the underwriters was not acceptable, the founder of WL Ross & Co said in message to the news agency. Diamond S will not issue shares at a price equivalent to less than the market value of its fleet, he said.

The company filed to sell 14 mill shares in a range of $14 to $16 each and was scheduled to price the IPO on 11th March.

“Diamond S does not need the money and will not issue stock at the relatively unfavourable price created by the present stock market environment,” he said in an email to Bloomberg. “We are not opposed to being publicly owned but not at any price.”

Investor enthusiasm for product tankers has slowed on growing concern that private-equity firms have ordered too many new ships, said Basil Karatzas, a shipbroker and adviser in New York to Bloomberg. Growth in the fleet of tankers could overwhelm demand to ship refined fuels and spoil a recovery in rates, he said.

Diamond S Shipping owns 33 product tankers and planned to use the proceeds of the IPO to contribute to the purchase of 10 new ships, according to its prospectus. Other shareholders include First Reserve Corp and a unit of commodities trader Cargill, the website said.

The 10 vesses were newbuildings orginally ordered by Metrostar, which had been sold to Dimaond S on the condition that the IPO went ahead to raise the purchase price.

It is not known whether this sale will now go ahead. 



Related News

Russian-chartered oil tanker pictured leaving Harland & Wolff shipyard

(Mar 10 2022)

A huge Russian-chartered oil tanker that was docked at Harland & Wolff’s shipyard for repairs was pictured being towed away. The Eduard Toll was being worked on at the shipyard after it arrived in Belfast before the beginning of Russia's invasion of ...



International Maritime Industries and CSM expand collaboration with new agreement

(Feb 22 2022)

International Maritime Industries (IMI), the largest shipyard in the MENA region, and Columbia Shipmanagement (CSM) have expanded their partnership by signing a Memorandum of Agreement that will boost Saudi Arabia’s capabilities in shipbuilding, ship...



Technical design study on conversion launched

(Feb 10 2022)

Concordia Maritime is evaluating the feasibility of vessel conversion.



ABS AIP for K Shipbuilding’s Methanol-Ready Design

(Dec 16 2021)

A methanol fuel-ready medium range tanker design by K Shipbuilding has received Approval in Principle (AIP) from ABS.



ABS approves 3D-printed spare parts after successful testing on oil tanker

(Nov 25 2021)

ABS, ConocoPhillips Polar Tankers, Sembcorp Marine Ltd and 3D Metalforge have taken a significant and tangible step to make additive manufacturing (AM) - also known as 3D printing - a reality in the marine industry through a joint development project...



Jun-Jul 2024

Tanker Operator Athens report: managing crewing, training challenges, views on SIRE 2.0