Container shipping group Hapag-Lloyd trimmed its initial public offering (IPO) amid wobbly markets on Wednesday, saying it now expected to raise about $300 million from the sale of shares to investors.
The group, which gave a 23-29 euros price range for the shares, previously said it aimed to raise $500 million in its stock market flotation to invest in new ships and containers.
Hapag-Lloyd joins several German companies that have recently had to curb their capital raising ambitions, like plastics maker Covestro and automotive supplier Schaeffler.
Hapag-Lloyd merged with Chilean peer CSAV last year, banking on consolidation to help it cope with the shipping sectorâ€™s worst slump on record and helping it return to profit in the first half of 2015.
Hapag-Lloyd said it plans to offer investors up to 15.72 million shares in its IPO, of which 11.5 million will be new stock from a capital increase.
Tourism group TUI is to offer up to 2.3 million existing shares, plus another 1.9 million to cover potential over-allotments, bringing the overall offer volume to as much as $410 million.
Europeâ€™s largest tourism group TUI holds 13.9 percent in Hapag but has been looking to sell its stake as part of a strategy to focus solely on tourism activities.
Part-owner Klaus-Michael Kuehne and Chilean partner CSAV will place orders worth $30 million each, Hapag-Lloyd said.
The shares are to start trading on the Frankfurt stock exchange on Oct. 30, with a free float of up to 19 percent, including existing shareholders with small holdings.