2007

From K/S to Copenhagen Stock Exchange: Nordic Tankers Seeks Danish IPO

We knew the KS and now DIS markets in Scandinavia were liquid. And we know the Oslo public equity markets are liquid. But Nordic Tankers is now testing the Copenhagen public equity markets in search of another source of liquidity. It is also taking to Denmark a business model that has been tested in various forms in public equity markets by shipping companies around the world over the past two years. It can be an MLP, regular or synthetic, or a C-Corp in New York, a shipping investment trust in Singapore, or a publicly traded KG fund in Germany. The effect is ultimately the same: to take the shipping industry’s most efficient private equity market – leasing – and source the equity from public investors, who then too may of course share in the returns.

The publicly-listed lessor, often a “trust”, structure is an incredibly elegant solution that has evolved over the past two years to the challenge of sourcing the massive amounts of equity now needed for newbuilding or modern secondhand vessels as values continue to hit historical highs. Particularly for owners looking to expand their fleets with the purchase of sister ships, or simply groups of related vessels, the ability to secure sufficient equity is efficiently and cost-effectively is paramount.

This is only an excerpt of The Week in Review – 05/31/2007

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