IPO: Tankerska Plovidba Launches First Significant IPO in Croatia Since 2008

mario pavić2 February 2015, LPJ Croatia Issue 118

On 26 January, the shipping company TankerskaPlovidba (TP), headed by Mario Pavic, launched an initial public offering (IPO) on the Zagreb Stock Exchange (ZSE) of its wholly-owned business unit Tankerska Next Generation (TNG).  Aside from the domestic flour producer Granolio (see LPJs 110 and 112), this marks the first significant IPO in Croatia since the outbreak of the economic crisis in 2008.

TP hired the financial companies IntercapitalVrijednosniPapir and Raiffeisenbank Austria to carry out the public offering, which is open until 5 February.  TP plans to yield approximately €35.5 million from the IPO to finance the purchase of medium-range tankers to expand TNG’s existing fleet.

The company is offering a total of 3.6 million TNG shares, with the optional sale of an additional 400,000 shares, at an indicative price range of between €8.3 and €10 per share.  The shares are offered to major investors in Croatia (pension funds, investment funds), United States and elsewhere, as well as small Croatian-based investors and current TP shareholders. The minimum value of shares for purchase is set at €52,000 (excluding small investors and existing shareholders).  The present employee stock ownership structure of TankerskaPlovidba will retain a minimum of 51% of TNG after the IPO is completed.

Founded in August 2014, TNG’s main focus is on product tankers.  TNG’s share capital amounts to €33.1 million. The company has a fleet of two ships and one additional ship to be delivered in September this year.  Based on the results of the IPO, TNG plans to purchase an additional three MR eco ships.  Of the three, two are expected to be delivered in April, while…

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