Tanker IPOs: The Stelmar and Genmar Environment

By Urs M. Dür

This year has been a disastrous year for US Initial Public Offerings (IPO) and, while not yet disastrous at time of writing, the US stock market has not fared much sweeter. In the spectre of this, tanker shares have remained strong and in recent weeks have begun to flourish again. Stelmar’s IPO has been quite successful so far and there are other tanker IPO’s in the pipeline, one being General Maritime but others are thought to be close behind.

Do tanker shares and tanker IPO’s offer something unique to today’s investor? Yes, in some respects; namely sound earnings.

However, not to take away from the value that tanker shares currently provide, earnings are not unique to shipping (for sure!) and public shipping companies have found it difficult to be valued basis earnings. In this article we take a look at the IPO market and the tanker peer group to illustrate the environment.

This is only an excerpt of Tanker IPOs: The Stelmar and Genmar Environment

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