This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Shipping IPOs Ready to Embark

Baltic, based with Georgiopoulos' other companies in New York though incorporated in the shipping tax haven of the Marshall Islands, will offer 16.3 million shares at $14 to $16 apiece, with an over-allotment option of about 2.4 million shares. The company thus hopes to raise about $300 million. Baltic's lead bankers on the deal are Morgan Stanley (MS) and the boutique firm Dahlman Rose. Georgiopoulos has been traveling for the better part of the last two weeks, conducting the Baltic road show.

Baltic's business model is simple: All of its ships (of which, as of yet, none are in the water) will operate on the spot the market -- or have full exposure to it through the kinds of long-term charters that track moves in spot-market shipping rates. DryShips (DRYS) started life in the public markets similarly, as a near-pure-play spot-market shipping stock.

In some ways, then, Baltic is less a company than a wagering vehicle with which investors can play the spot market and the volatile fluctuations that characterize short-term ocean-going dry-cargo freight rates. Genco's management will serve as Baltic's management and fleet administrator -- with Baltic paying its parent company a fee for the privilege. Baltic does intend, however, to distribute all of its net income to shareholders via a quarterly dividend.

As for its initial fleet, Baltic will use proceeds from the offering to buy four Supramax and two Capesize vessels. It won't take on any long-term debt to make the purchases, according to its prospectus; one of the company's aims is to keep leverage low, a lesson perhaps learned during the financial crisis, when many shipping concerns used cheap credit to aggressively expand their fleets, only to see those loans go underwater.

Baltic's ships -- all newbuildings -- are scheduled for delivery in April, except one of the Capesizes, which will hit the water in October.

Crude Carriers, meanwhile, hopes to sell 13.5 million shares for $19 to $21 each, raising as much as $310.5 million. The Piraeus, Greece-based company, also incorporated in the Marshall Islands, will buy three ships from its parent company -- one Suezmax and two very-large crude carriers, or VLCCs -- which will constitute Crude's initial fleet.

-- Written by Scott Eden in New York

RELATED STORIES:







Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs