Bourse spells out rules for maritime flotations
The Athens Stock Exchange yesterday paved the way for ocean-going shipping companies to list on the market, as it unveiled a regulatory framework for their flotation via investment companies, as well the ways they can utilize proceeds raised from the market. At present, only passenger shipping companies are listed on the bourse, while their ocean-going brethren have long been urging bourse authorities and the government to allow them the same opportunity. Ocean-going shipping companies, that set up investment vehicles for the purpose of a market listing, will need to own at least four vessels with a capacity of 3,000 register tons each, the Athens exchange said yesterday. This could fall to three vessels following their flotation. The investment vehicle must have a minimum share capital of 29.35 million euros. Unlike the previous regulatory regime, under which the vehicles acquired operating permits from the capital market commission, the new framework specifies that they should be societe anonyme companies focusing exclusively on ocean-going activities. The new rules also spell out the uses of new funds raised by ocean-going shipping companies from the market. Specifically, the investment company can only channel half of its funds to each investment and no more than 30 percent of its resources to new buildings. Up to 25 percent of its funds can be used for acquiring shares in ocean-going shipping companies, ship management companies or in real estate directly connected to the investment vehicle’s activities. ASE’s new framework also requires the investment vehicle to have invested at least 60 percent of its funds in shares of ocean-going shipping companies during its application for a listing and during the flotation process. To ensure that investors are kept informed of developments, the investment companies will need to publish biannual reports of their activities.
