(Bloomberg) —
Volare Shipping Ltd. had a successful debut on the Oslo stock exchange on Monday, marking its entry as part of Trafigura Group Pte.'s spin-off. This listing comes amid a trend of tanker companies going public in Norway.
By 1:42 p.m. local time, the shares rose by 6.9% after the company raised around $500 million through a private placement, which valued Volare at $1.2 billion.
Volare follows in the footsteps of Capital Tankers Corp., which listed in Oslo in March, and OMC Tankers Ltd., which debuted on Euronext Growth in August. Euronext reports that Oslo has become Europe’s largest stock market for shipping firms, thanks to its efforts to encourage more shipping companies to list.
CEO Alexandre Duff mentioned that the concentration of shipping investors, banks, lawyers, and industry expertise in Oslo made it “the only option for this particular transaction.” He expressed interest in moving Volare to the main market of Oslo and hinted that a dual listing in New York might be an option in the future, depending on the company's growth, available capital, and investor interest.
Volare's listing allows the company to take advantage of the strong tanker market, which has seen rising freight rates and vessel values due to disruptions around the Strait of Hormuz. According to Duff, Volare currently operates six very large crude carriers and has eight new tankers being built in China.
The funds from the listing will be used for investing in vessels and will provide the company with a foundation to acquire or order additional ships in the future. After the listing, Trafigura is expected to hold approximately 54% of Volare's shares.