German shipping group Hapag-Lloyd in $500 million IPO
German container shipping company Hapag-Lloyd said Monday it plans to raise $500 million (447 million euros) in new funds by going public by the end of this year.
Hapag-Lloyd "intends to list its shares on the regulated markets" of the Frankfurt and Hamburg stock exchanges, it said in a statement.
The initial public offering (IPO) was expected to raise "total gross proceeds in the equivalent euro amount of $500 million," with $400 million stemming from the sale of new shares to retail and institutional investors.
In addition, core shareholders Kuehne Maritime and Compania Sud Americana de Vapores would each buy $50 million in new shares.
"Hapag-Lloyd intends to use the expected $500 million IPO proceeds for further investments in ships and containers to further strengthen its capital structure, long-term growth and profitability," it said.
Hapag-Lloyd already eyed a stock market listing after it acquired the container shipping activities of CSAV in mid-2014 to create the world's number four in the sector, with revenues of nearly nine billion euros.
A former division of tourism giant TUI -- which still holds a 14 percent stake in the company -- Hapag-Lloyd has planned an IPO several times in the past, but postponed it.
© 2015 AFP