Taylor Maritime Investments, the first shipping IPO in London for many years, closed out its first day of trading yesterday, up 5% to close at $1.05.
The Guernsey-incorporated firm raised $253.7m in an oversubscribed issuing on the London Stock Exchange at an initial price of $1 per ordinary share.
Investors in the Ed Buttery-led vehicle include Germany’s Christian Oldendorff and US-based investment management company PointState Capital LP.
Taylor Maritime Investments will use the proceeds to invest in 23 secondhand handysize and supramax bulk carriers, and it is targeting a dividend yield of 7%.
It completed the purchase agreements for 17 ships yesterday for $182.8m, part-financed by the issue of around 93.7m ordinary shares.
The acquisition of the remaining six vessels is currently expected to complete between July 2021 and February 2022 for a consideration of $81.3m, which will be part-funded by the issue of a further approximately 13.3m ordinary shares.
The company expects to declare its first dividend of 1.75 cents per ordinary share in October this year.