Volare, spun out of Trafigura Group Pte., began trading in Oslo on Monday and was up 6.9% at 1:42 p.m. local time. Ahead of the listing, the company raised about $500 million through a private share placement, implying an equity valuation near $1.2 billion.
With this deal, Oslo registers another tanker listing in its ongoing spree. Capital Tankers Corp. went public in Oslo in March, while OMC Tankers Ltd. entered Euronext Growth in August. According to Euronext, the surge has elevated Oslo to Europe's leading exchange for shipping companies when counted by listings, aided by a concerted effort to lure more maritime issuers.
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Chief Executive Alexandre Duff said Oslo's concentration of shipping-focused investors, banks, legal advisers, and sector know-how made it "the only option for this particular transaction." He intends for Volare to move up to Oslo's main market, and a dual listing in New York might be evaluated at a later stage, contingent on growth, the availability of capital, and investor appetite.
Management said the listing lets Volare tap a particularly strong tanker market, with turmoil around the Strait of Hormuz pushing up freight rates and ship valuations. The company currently has six very large crude carriers in service and eight additional tankers being built in China. Proceeds will back those vessel commitments and create a basis to buy additional ships or place newbuild orders.
After the deal, Trafigura will hold about a 54% ownership interest. For everyday investors, the signal is that Oslo is turning into a go-to venue for shipping exposure, with momentum tied to disruption around the Strait of Hormuz pushing up freight rates and vessel values.
A strong debut says the market still wants shipping exposure. Get the free Market Briefs daily newsletter and watch the pipeline.
