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Comment by Dmitry Bolyasnikov, Executive Director, Equity Capital Markets at VTB Capital, for IJGlobal

21 May 2017
IJ Global

Global Ports Holding completes IPO

Alexandra Dockreay

On 17 May 2017 the world’s largest cruise port operator Global Ports Holding, which is based in Turkey, completed its initial public offering (IPO) on the London Stock Exchange (LSE), raising £154.5 million ($200 million).

The deal is the first IPO of a Turkish issuer on the main market of the LSE, as well as being the largest Turkish IPO in four years, according to Dmitry Bolyasnikov, executive director, equity capital markets at VTB Capital.

GPH listed a 37.9% share of the company. The offer price was £7.40 per ordinary share, and so the implied market capitalisation is £464.9 million.

The share price is near the bottom of the price range GPH set at £7.35 to £8.75 on 2 May.

Bolyasnikov said: “The issuer and shareholders were ready to sell within the price range which was set, the book was very strong and comfortably oversubscribed at the resulting levels, so it’s a successful deal with healthy allocations to a diversified mix of investors and the valuation that compares very well with global cruise operators’ multiples.” He added a number of orders in the book exceeded $20 million, which shows there is “substantial demand”.

The net proceeds for Global Ports Holding PLC were £51.7 million. The selling shareholders were Global Ports Holding BV and the European Bank for Reconstruction and Development (EBRD). The estimated gross proceeds for Global Ports Holding BV are £75.8 million, and £20.7 million for the EBRD.

Singapore's sovereign wealth fund GIC Private Limited has acquired approximately 4.78% of voting rights, it emerged on 19 May.

The company Global Ports Holding PLC plans to use the majority of net proceeds to expand and develop new ports. GPH said in the IPO prospectus that it is in discussions for a number of cruise port acquisition targets, including nine in Europe, seven in the Caribbean and four in Asia.

GPH has 14 cruise and commercial ports in eight countries in its portfolio handling 7.5 million passengers in 2016. Its ports are in Italy, Spain, Portugal, Croatia, Montenegro, Turkey, Malta and Singapore. Its commercial port business runs through two ports in Turkey and Montenegro specialising in container, bulk and general cargo handling.

Goldman Sachs, Citigroup and Barclays were joint global coordinators and bookrunners. VTB Capital was another joint bookrunner and Shore Capital was lead manager. Baker McKenzie was legal adviser to GPH.

VTB Capital

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