German container line Hapag-Lloyd is determined to push ahead with its planned initial public offering (IPO) faster than expected, according to local press reports.
The company, which has Chilean shipping group CSAV as its largest shareholder, aims to complete its listing on the Frankfurt Stock Exchange by the middle of November, Hamburg Evening newspaper Hamburger Abendblatt has reported, citing several sources claimed to be familiar with the matter.
Hapag-Lloyd’s management declined to comment on the report when contacted by IHS.
Although market conditions in container shipping remain challenging, the German carrier may have a convincing story for investors as it reaps the benefits of cost-efficiencies from its takeover of CSAV’s container shipping division and the drop in bunker fuel expenses over the past year.
For the first six months of this year, Hapag posted net profits of EUR157 million (USD177.3 million) against EUR173 million in losses during the corresponding period 2014.
The stakeholders hope to have the container line valued at over EUR5 billion in total, with 20% of its share capital initially being placed to investors.
Travel group TUI, which has been trying to exit from its involvement in shipping altogether, is to be given priority in selling its 14% stake.