Taiwan-based ocean shipping company Yang Ming has completed a public offering in which it raised $6 billion new Taiwan dollars (U.S. $200 million), having issued 500 million shares of its stock at a premium of $12 NTD (U.S. $0.40) per share, the company announced Nov. 29.
The public offering, which began in September, received “widespread participation” by existing shareholders as well as new investors such as insurance institutions, and container stevedoring and transport companies, according to Yang Ming.
“Yang Ming is grateful to have received overwhelming support from the investor community. The optimism and enthusiasm shown by investors indicate widespread confidence in the company’s plans and future,” the firm said in a statement. “Yang Ming will continue to improve on its efficiency, reduce operating costs, and grow its operations.”
At the present time, the company is nearing conclusion of its latest private offering. Pending final confirmation, it’s expected to issue an additional 257.7 million shares of stock. With this placement, Yang Ming will have raised $2.62 billion NTD (U.S. $87.5 million) in additional capital.
Upon finalizing these latest offerings, Yang Ming said, its net capital will have increased to a total of $23.2 billion NTD (U.S. $774 million) and government-related ownership in the company will climb to 45.07 percent, with the Ministry of Transportation and Communications, the National Development Fund and the Taiwan International Ports Corp. listed as the largest stakeholders.
Yang Ming first embarked on a campaign to recapitalize its financial structure in the closing months of 2016 in light of difficulties plaguing the shipping industry.
The company’s plan to proceed with private and public offerings of its stock in efforts to raise capital resulted in an initial private offering that was completed in February. In it, the company said it issued 161 million shares, which raised $1.69 billion NTD (U.S. $56 million) in capital.
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