Global Oceanic Carriers Limited, the Greek based drybulk shipping company, today announces the commencement of dealings of its Ordinary Shares on the AIM market (AIM) of the London Stock Exchange. Collins Stewart is acting as Nominated Adviser and as Broker to the Company. The stock market EPIC will be GOC.L.
GO Carriers is a newly formed shipping company whose activities include ship ownership, chartering and management. The Company has already paid a deposit to acquire three drybulk ships and has agreed to acquire a further vessel.
The management will use its extensive shipping experience, in particular that of Vassilis Vintiadis, the founder and owner of Niva Shipping Limited a 27 year old shipping company based in Piraeus and the dynamic market conditions to build a fleet for long term charter revenue.
Placing statistics
| Placing Price | 140p |
| Number of Placing Shares | 16,052,409 |
| Number of Ordinary Shares outstanding following the Placing | 18,930,755 |
| Market capitalisation at the Placing Price on Admission | £26.50 million |
| Percentage of enlarged issued Ordinary Share capital subject to the Placing | 84.80 per cent. |
| Gross proceeds of the Placing to be received by the Company | £22.47 million |
| Net proceeds of the Placing to be received by the Company | £20.07 million |
The drybulk market
Drybulk ships carry cargo that is shipped in large volumes and including iron ore, coal and grain. Strong demand from Asia for these commodities has been the driving force behind the recent increase in seaborne drybulk trades. Between 1999 and 2004, trade in all drybulk commodities increased from 1.97 billion tons to 2.46 billion tons, an increase of 25 per cent. In 2004, approximately 2.5 billion tons of drybulk cargo was transported by sea, comprising more than one-third of all international seaborne trade. Fuelling this growth has been the Far East which imports over half the worlds shipped coal and iron ore.
This demand has led to a considerable shortage of drybulk ships with shipyards at full capacity until the end of 2007.
Reasons for the Placing and use of proceeds
The Company intends to use £22.47 million (US$41.09 million) of the proceeds of the Placing, £19.69 million (US$36 million) of the funding from HVB and existing cash balances to acquire the Initial Vessels and the Marinchris as follows:
On the decision to float on AIM, Vassilis Vintiadis, CEO of Global Oceanic Carriers Limited, commented:
"Our listing has been a success, our shareholders have recognised the exciting position that GO Carriers has created. As the first Greek based shipping company to join the AIM market, we are able to offer a prime opportunity to access a well established and buoyant global market in which GO Carriers, through its existing long term relationships and strategic acquisitions, has a strong head start."
Collins Stewart is acting as both Nominated Adviser and Broker to the Company.