Private placement of Transport Group FESCO’s new issue of common stock might help attract some extra financing resources necessary to optimize the portfolio of loans and investment program of the company, the Finam analyst Konstantin Romanov says. The expert does not rule out that the common stocks may be placed at a premium to the current market price.
"According to our estimates, with the market conditions the company could face difficulties in IPO of 23,4% of its current capital stock. However, we expect that a significant portion of additional common stocks would be bought out by the FESCO’s major stockholders. According to our estimates in the case of private placement the stocks might be sold at a premium by selling a substantial holding. The traditional orientation of the company on the investors would block the placement of stocks with a significant discount to the market price," the analyst said.
Yesterday, FESCO’s CEO Sergey Generalov said that the company intends to undertake a private placement of its common stock. The registration of issue prospectus to be held in July and August.
Transport group FESCO, formed on the basis of the Far Eastern Shipping Company (FESCO), is a largest Russian container operator. The Group has its own vessels fleet of over 1 million DWT. The Company’s own container fleet is over 50,000 TEUs. Total capacity of its handling facilities exceeds 1.6 million TEUs.
"According to our estimates, with the market conditions the company could face difficulties in IPO of 23,4% of its current capital stock. However, we expect that a significant portion of additional common stocks would be bought out by the FESCO’s major stockholders. According to our estimates in the case of private placement the stocks might be sold at a premium by selling a substantial holding. The traditional orientation of the company on the investors would block the placement of stocks with a significant discount to the market price," the analyst said.
Yesterday, FESCO’s CEO Sergey Generalov said that the company intends to undertake a private placement of its common stock. The registration of issue prospectus to be held in July and August.
Transport group FESCO, formed on the basis of the Far Eastern Shipping Company (FESCO), is a largest Russian container operator. The Group has its own vessels fleet of over 1 million DWT. The Company’s own container fleet is over 50,000 TEUs. Total capacity of its handling facilities exceeds 1.6 million TEUs.