Hoegh seals US listing

Hoegh LNG Partners (Hoegh LNG) has emerged victorious in its quest to raise cash by way of an initial public offering (IPO) in the US.
Sveinung Stohle, chief executive of Hoegh LNG.

Sveinung Stohle, chairman of Hoegh LNG Partners.

The crusade commenced in late July and its ticker began trading on the New York Stock Exchange under the symbol “HMLP” on 7 August.

Today, which marked the conclusion of the IPO, the company confirmed that it offloaded 11.04 million units over the course of the campaign at a cost of $20.00 a piece.

In a statement the partnership pointed out that the total included the sale of 1.44 million units to underwriters, which means their options were exercised in full.

The price tag tied to the campaign suggests that the company raked in over $220m, which marks one of the biggest Wall Street fundraisers the shipping industry has seen in some time.

On Tuesday the company’s units were commanding $24.32 a piece, which serves as further evidence that investors are willing to pay a premium for stocks that offer exposure to LNG.

In today’s announcement Hoegh LNG reminded investors that it was formed to own, operate and acquire floating storage and regasification units, liquefied natural gas carriers and other “LNG infrastructure assets” under long-term charters.

Initially, the Oslo-based operator’s fleet will include a 50% interest in the GDF Suez Neptune (built 2009), a 50% interest in the GDF Suez Cape Ann (built 2010) and a 100% economic interest in the PGN FSRU Lampung (built 2014).

Hoegh LNG chief executive Sveinung Stohle was installed as the chairman of the MLP (master limited partnership) while former Perella Weinberg Partners managing director Richard Tyrrell was appointed as its chief executive.

As we reported when the IPO first started to take shape the trip to the capital markets was backed by Citigroup, BofA Merrill Lynch, Morgan Stanley, Barclays and UBS Investment Bank. DNB Markets, Credit Agricole CIB and RS Platou Markets AS served as co-managers of the US offering.

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