According to sources, Shanghai Jinjiang Shipping, a Chinese specialist within Asia, has announced its ambitious plan to raise RMB 3 billion (approximately USD 418 million) through an initial public offering (IPO) on the Shanghai Stock Exchange. Funds raised from the IPO will be used to purchase container ships, containers, and support smart ship transformation initiatives.
The company had initially submitted its IPO application in January, expressing its intention to go public from 2021. The IPO will involve issuing 15% of the company’s shares, amounting to 190,412 shares. Majority owner SIPG, which currently owns 98% of the shares, will retain majority control even after the listing.
One of Jinjiang Shipping’s key objectives is to expand its fleet as part of a broader expansion strategy in the Southeast Asia region. In addition, the company aims to increase the proportion of owned tonnage and improve its environmental footprint by developing new LNG and methanol fueled tonnage, replacing older vessels in its fleet.
As part of its expansion plans, the company has already ordered four 1,900 TEU units from Zhejiang Yangfan, which are expected to be delivered in 2023. After the initial public offering, Jin Jiang intends to place orders for six more units of 1800 TEU and two units of 2400 TEU. . Most of the proceeds from the IPO will be allocated to the acquisition of these new vessels, as shown in the table (above left).
Shanghai Hai Hua Shipping, a subsidiary of Jin Jiang, also plans to benefit from the IPO proceeds by investing in two new 1,000 TEU feeder units.
Jin Jiang currently operates a fleet of 48 ships with a total capacity of 44,711 TEU, of which 21 ships (20,000 TEU capacity) are company owned. Amid the challenges posed by the pandemic, the carrier briefly dabbled in transatlantic operations through a slot deal with Transfer Shipping. However, it has since withdrawn from trading and is now primarily focused on providing services between China and Japan, as well as Southeast Asia.
With the initial public offering, Shanghai Jinjiang Shipping aims to strengthen its market position, expand its services in the prosperous Southeast Asia region, and embrace green technologies for a sustainable future in the maritime industry. The move is likely to attract significant attention from investors seeking to capitalize on growing demand for shipments within Asia and the company’s strategic expansion plans.
Sources: Ship Technology, SeaTrade Maritime, Alphaliner
