T.S. Lines aims to raise $145 million from IPO to fund newbuilds

T.S. Lines plans to sell 250.94 million shares at HKD4.50 per share raising HKD1.129 billion or $145.3 million through the IPO on the HK stock exchange. The offer opened on 24 October and closes on 29 October.

Some 141,804,000 shares, or 56.51% of the offering has been taken up cornerstone investors.

Net proceeds from the offering are estimated at HKD896 million.

The majority of proceeds from the offering will be used to fund newbuildings and charter contracts. Half of the proceeds, or HKD448 million, would be used to fund a pair of 7,000 teu newbuildings ordered in April. Another 25% of the proceeds – HKD224 million would be used for vessel chartering contracts the company has entered into.

Of the remaining proceeds 15%, or HKD134.4 million would be used for container leasing, and 10%, or HKD89.6 million would be set aside for working capital.

T.S. Lines currently has a fleet of 36 owned vessels and 10 that it charters in. As of April 30, 2024, the company operated nine independent services, 22 joint services, 15 services through slot exchange arrangements and two services through slot chartering arrangements.

In 2023 T.S. Lines generated revenues of $876 million and reported a gross loss of $33.8 million.

Joint Sponsors, Overall Coordinators, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers for the offering are JP Morgan and China Merchant Securities.

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