Published On: Sun, Apr 6th, 2014

Idan Ofer Seeks $200 Million Private Placement For Tanker Financing Ahead of Possible IPO Later

TradeWinds: Idan Ofer plans to raise $200 million ahead of an IPO on the Oslo Stock Exchange.

Idan Ofer

TradeWinds reports that Idan Ofer plans to raise $200 million in a private placement by one of his private shipping companies,  Quantum Crude Tankers Ltd. ahead of an IPO on the Oslo Stock Exchange. The offering parallels Ofer’s planned offering of Israel Corporation (TASE: ILCO) subsidiary Israel Chemicals Ltd. (TASE: ICL) on Wall Street.

After the placement and listing on the Oslo over the counter market, Ofer plans a full IPO of Quantum Crude Tankers on a major stock exchange within one year. After the offering, the family’s Quantum Pacific Group will keep a majority stake in the company. Although “TradeWinds” does not mention a company value for the offering, it will presumably be a few billion dollars.

TradeWinds” reports that RS Platou, DNB, Pareto, ABN Amro and ING are the underwriters. It quotes sources as saying that Quantum Crude Tankers will use proceeds from the offering to buy a suezmax ship (which can pass through the Suez Canal when fully loaded) and a pair of new aframaxes (oil tankers smaller than 120, 000 metric tons).

Quantum Crude Tankers says that it has a fleet of 11 tankers: seven suezmaxes, two aframaxes and two very large crude carriers (VLCCs). The company says it is a “Pure-play crude shipping platform with a solid operating track record.” It is incorporated in the Marshall Islands.

Quantum Crude Tankers CEO Steve Kunzer, a 20-year industry veteran, previously held positions at the Ofer family’s private shipping companies Zodiac Maritime Agencies Ltd. and Tanker Pacific Ltd.

“Longer-term specific targets for Quantum Crude Tankers include building a fleet of 20 vessels within two to five years, ” says “TradeWinds“. “That effort got off to a solid start this week with the purchase of the 164, 000-dwt Knock Clune (built 2010) from Norwegian shipowner Fred Olsen”. It adds that the ship cost $48.5 million, $4 million more than a couple of years ago.

TradeWinds” says, “Shipowners raised $2.2 billion from IPOs and follow-on issues in the first quarter of this year, Clarksons data shows. Of that, $1.1 billion was raised by tanker owners”.

Gibraltar-registered Quantum Pacific also owns 69.1% Pacific Drilling SA (NYSE: PACD; NOTC: PDSA), a building of deepwater drillships.

Published by Globes [online], Israel business news – www.globes-online.com

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