BW Pacific to raise $250 mill

Nov 06 2015

Shares in product tanker owner BW Pacific, part of the BW Group, are expected to be admitted and commence conditional trading on the Oslo Stock Exchange on 13th November 2015. This move was still subject to approval of the listing application and successful completion of an offering, at the time of writing.

The shares are expected to be sold at between NOK44 and NOK50 each, corresponding to an equity value (including issuance of the new shares) of between about NOK6,879 mill and NOK7,524 mill.

However, the final price per share may be set above or below this indicative price range, the company said in a statement.

The offering will comprise of up to 48,693,182 new common shares to be issued by the company to raise a fixed amount of NOK2,142.5 mill (equivalent to $250 mill at a NOK/USD exchange rate of 8.5700) and up to 9,738,636 existing common shares to be offered by the BW Group and PAG Tankers collectively.

The Norwegian Financial Supervisory Authority has approved the prospectus dated 30th October, 2015, prepared for the offering.

DNB Markets has been retained as global co-ordinator and joint bookrunner for the IPO, while Pareto Securities has been retained as a joint book runner and Skandinaviska Enskilda Banken, as a co-manager for the IPO.

In addition, DNB Markets, will be granted an over-allotment option to purchase a number of additional common shares equalling up to about 15% of the final aggregate number of offer shares allocated.

Currently, BW Pacific has assets of $1.2 bill and book equity of $522 mill. The company has a fleet of 33 tankers, including 17 LR1s and 16 MRs, as well as 12 newbuildings - six LR1s and six MRs.