Restructured Danish tanker operator Torm is looking at a listing on the New York Stock Exchange. The company, which was taken over by Oaktree this year, said during its third quarter results it was “contemplating a new structure with a potential listing on the New York Stock Exchange and Nasdaq Copenhagen”. The IPOs would take place next year.
The Danish firm entered restructuring three and a half years ago, weighed down by $1.9bn of debts. This spring private equity giant Oaktree Capital won shareholder approval to take over the shipping line. Oaktree has pumped cash and ships Torm’s way making it one of the largest owner-operators of product tankers globally. This September Torm quit the dry bulk trades with the sale of its last two bulkers.
Talking up prospects Torm ceo Jacob Meldgaard said at today’s quarterly briefing: “Torm’s strong operational platform has delivered the highest product tanker freight rates since 2008 and a positive EBITDA of $96m in the third quarter of 2015. Torm has demonstrated its financial and strategic flexibility with the exit from bulk to become a pure-play product tanker company, the acquisition of three MR vessels and two new financeing agreements in the third quarter of 2015. With our proven track record and a large fleet on the water, Torm is well-positioned to take advantage of the promising supply and demand fundamentals in the market.”
Other product plays are looking to tap current solid sentiment for the sector with IPOs, notably BW Pacific whose listing on the Oslo Bors is due soon.