The Estonian state-owned port company AS Tallinna Sadam (Port of Tallinn) on Tuesday announced its intention to list its shares on the Baltic main list of the Tallinn Stock Exchange.
According to the notice, the company plans to offer about one third of the company to institutional investors in Estonia and abroad. The company plans to issue up to 75.4 million new shares, and the present sole owner, the Estonian state, is also planning to sell up to 11.3 million existing Port of Tallinn shares.
The port company expects to announce the public offering of its shares around May 25, and the offering period is to last approximately nine working days. The prospectus of the offering registered at the Estonian Financial Supervision Authority is to be disclosed at the announcement of the public offering.
The institutional offering is to be carried out by Citigroup Global Markets Limited, Carnegie Investment Bank AB, Erste Group Bank and Swedbank, and the retail offering by Swedbank and LHV.
"The Port of Tallinn's vision is to become the most innovative and modern port in the Baltic Sea region, with an emphasis on digitalization, strong customer base and dedicated employees, and a business model structured around well-balanced core operational areas," Port of Tallinn CEO Valdo Kalm said in a press release.
"The Port of Tallinn has a track record of stable financial results and regular dividend distributions," he continued. "In pursuing a listing on the Tallinn Stock Exchange, we are positioning ourselves as a high quality dividend asset. Listing the company on the Tallinn Stock Exchange will add a stamp of quality to our achievements and push us to seek further developments."
"The government's plan to list Port of Tallinn shares on the Nasdaq Tallinn Stock Exchange first and foremost provides new investment opportunities in Estonia," Minister of Economic Affairs and Infrastructure Kadri Simson (Center) said. "It is hoped that this step will improve the liquidity and attractiveness of the local capital market. The planned listing will also increase the efficiency and transparency of the company even more, and will provide an example for possible listings of other Estonian state-owned companies in the future."
Last month, the government approved an order according to which it epects the Port of Tallinn to pay at least €30 million in net dividends per year in 2019 and 2020, and at least 70 percent of the company's previous year's net profits beginning in 2021.
Port of Tallinn revenue increased 18 percent to €121.3 million in 2017, and earnings before interest, taxes, depreciation and amortization (EBITDA) increased one percent to €67 million, while net profit fell 33 percent to €26.4 million, primarily due to dividends.
Freight handled by ports owned by the Port of Tallinn totaled 19.2 million tons last year, down five percent compared to 2016. The number of passengers served by company-owned ports, meanwhile, increased four percent to a record 10.6 million.
Editor: Aili Vahtla