The largest IPO in
Oslo in 2013
BW LPG was listed on the Oslo Stock Exchange on 21 November 2013. The Company raised approximately US$280 million of new capital through this initial public offering (IPO). With a total offering size of approximately US$610 million, this was the largest IPO in Oslo in 2013, and the largest shipping IPO in Europe and the US since 2005.
Listing the LPG Business
Over the 18 months leading up to 2013, BW LPG expanded substantially in the LPG transportation sector with investments of over US$1 billion. This included the acquisition of several modern second-hand vessels, including a 10-vessel Very Large Gas Carrier (VLGC) fleet from Maersk Tankers, followed by contracts for four newbuildings from Hyundai Heavy Industries (HHI) in Korea. With strong prospects for additional business opportunities, the decision was taken to list the LPG business to broaden the capital base.
BW LPG’S IPO Advisors
BW LPG appointed Bank of America Merrill Lynch and Skandinaviska Enskilda Banken (SEB) as its joint global coordinators. The joint lead bookrunner for the offering was Deutsche Bank AG, and ABG Sundal Collier and Nordea were co-managers. Norwegian Counsel was Thommessen AS, and international counsel was Cleary Gottlieb Steen & Hamilton LLP.
Listing on the oslo stock exchange
The Oslo Stock Exchange was selected after considering other venues, as an efficient route to the public markets with a long history of shipping related IPOs, a strong investor base for shipping, and excellent analytical coverage of both shipping and energy markets. The company also has a partly Norwegian heritage through its predecessor company Bergesen d.y. ASA. As was borne out by the quality of the investor book, Oslo provides an exchange with strong access to international capital.
Strong interest in the listing
The IPO was launched on 7 November 2013 with a pricing range of NOK 40 – 50 per share. The senior management team undertook a roadshow which included Scandinavia, UK and the US, receiving significant interest from investors in all locations. The bookbuilding period began on 11 November 2013 and the IPO was covered at the lower end of the price range within the first day. On 18 November 2013, based on the orders received, the indicative price range was adjusted to NOK 45-50 per share. The offer period was also accelerated to end on 20 November 2013.
The final offer price was NOK 47 per share, implying a market capitalisation of approximately NOK 6.4 billion. Trading in the shares of BW LPG Limited with the ticker code “BWLPG” commenced on 21 November 2013. Unconditional trading in the shares began on 26 November 2013. The stock opened at NOK 49 and in the period since the listing, BW LPG’s price has traded upwards, touching a peak of NOK 76.25 per share in January 2014.
This IPO won Marine Money’s Initial Public Offering Deal of the Year.
Reason for success
A major contributor to the success of the IPO has been the hard work and dedication of the company’s employees. BW LPG’s large pool of highly competent and skilled seafarers and shore staff with many years of experience in the industry and with the company were key areas highlighted during the roadshow. The management and board look forward to a successful future for the company.