TORM: “ON DAQ”

In Freshly Minted (FM), our weekly online executive summary, of March 7th, our team, lead b y Nicolai Heidenreich, took a look at the board approved listing by D/S Torm (the Danish product tanker and bulk liner owner/operator) of American Depository Receipts (ADRs) to be listed on the NASDAQ in New York at some point in late March or early April.

A road show to follow immediately post-listing in the US to trump-up interest in the shares is to be led by Jefferies. The US listing is designed to attract US and institutional investors, improve the volume trade of the shares and therefore their liquidity and, in doing so, improve the valuation of the company so that it is more on a par with other US listed public shipping equities, notably tanker shares, which, while still cheap by traditional valuation standards – even for “deep cyclicals” – re c e i ve a better valuation in the US than equivalent companies on foreign listings, especially a Copenhagen small-cap. The purpose of this article is to give our readers a reasonable valuation of the company and to discuss the relativ e merits and/or disadvantages of such an ADR listing.

This is only an excerpt of TORM: “ON DAQ”

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