Capital Tankers Corp., owned by Evangelos Marinakis, has fully covered an increased share offering ahead of its listing on the Oslo Stock Exchange, according to an extensive report by Gary Dixon in TradeWinds. It is worth noting that demand from the investment community was unprecedented, with the offering being multiple times oversubscribed compared to the initial size. The transaction is already being recorded as one of the largest capital raisings ever completed by a shipping company and represents the largest such fundraising in the history of the Norwegian market.
Historic “landing” in Oslo
The new Athens-based company announced on Wednesday that it would raise up to $345 million through a private placement of shares in the Norwegian capital, as part of its efforts to finance a major newbuilding program. Capital Tankers said on Friday that the transaction “attracted significant interest from high-quality investors.”
In fact, the response from Norwegian as well as international institutional investors was so strong that the company’s Board of Directors immediately revised the size of the offering.
As a result, the base offering was increased from $300 million to $435 million, while the over-allotment option rose to $65 million from $45 million. “The private placement was multiple times oversubscribed at the increased total offering size,” the company said in its announcement.
A total of 35.7 million shares were purchased by more than 900 investors at a price of NOK 134 per share, Dixon reports, adding that this set the post-money equity valuation at NOK 18.2 billion (approximately $1.9 billion).
Gross proceeds amounted to $441 million. Upon completion of the transaction, Capital Maritime & Trading Corp., also owned by Marinakis, will hold approximately 74% of the company, while 26% of the share capital will be in the hands of high-quality, long-term investors. The total valuation of Capital Tankers now stands at $1.9 billion, giving the company significant market weight.
On Wednesday, Robert Naess of Nordea Investment Management told TradeWinds that he was considering investing in the private placement. “We have looked at it and think it looks attractive,” said the chief investment officer. The offering is a key piece of the puzzle in financing Marinakis’ extensive tanker newbuilding program, with vessels under construction accounting for the majority of the company’s initial 30-ship fleet, Dixon notes.
Fearnley Securities and Pareto Securities acted as joint global coordinators for the deal, which is expected to lead to the listing of Capital Tankers on Euronext Growth Oslo around March 17. Clarksons Securities and SB1 Markets also participated as joint bookrunners.
Chief Executive Officer Jerry Kalogiratos said on Wednesday: “Capital Tankers offers a unique investment opportunity in the youngest and most technologically advanced crude oil tanker fleet in the public markets, backed by one of the world’s leading shipping companies, with strong cash flow generation potential, attractive valuation, embedded optionality from our 13 vessel options, and a clear commitment to shareholder returns.”
TradeWinds further highlighted: “Marinakis moved at a time when the tanker market is in a particularly strong phase, with historically high daily VLCC earnings and existing VLCC owners trading comfortably above net asset value. The core of the fleet consists of Marinakis’ 22-vessel newbuilding program. In addition, there are options for 13 new vessels that must be exercised by year-end at predetermined prices. These have been granted to Capital Tankers by Capital Maritime & Trading. Capital Tankers will also have a 10-year right of first refusal on all new VLCC, aframax and suezmax vessels ordered by Marinakis, as well as on any chartering opportunities of at least 12 months’ duration.”
Plan for a U.S. listing
According to the report, the ultimate goal is to move to Oslo’s main market and pursue a dual listing in the United States. The Oslo market is home to the world’s largest listed VLCC owner, Frontline, and is also the market where Okeanis Eco Tankers carried out its initial public offering. Both companies are also listed in New York.
Specifically, the funds raised will serve as “fuel” for:
- Financing the extensive investment program
- Strengthening working capital
- Covering general corporate purposes and transaction costs
A “Pure Play” in crude tankers with a green orientation
Capital Tankers Corp., a spin-off from Capital Maritime & Trading, represents a pure play in the crude oil tanker sector. Its fleet consists of 30 modern vessels (VLCCs, Suezmax, Aframax/LR2), with eight already in operation and 22 under construction, forming one of the youngest tanker fleets globally, with an average age close to zero (0.2 years). In addition, the company holds options for 13 more newbuild vessels.
The company’s key competitive advantage lies in the technological superiority of its fleet. A significant number of its vessels are LNG dual-fuel capable or LNG-ready. This fuel flexibility and high energy efficiency position Capital Tankers at the forefront of the “green” transition, fully aligned with stringent international regulations such as the EU ETS and FuelEU Maritime.
With this move, Marinakis’ group once again demonstrates its ability to attract high-caliber capital, leveraging the sophistication of the Norwegian market and investor confidence in a growth model that combines tradition with innovation.
