Vantage tanker brokers gets SEC nod for IPO, to list in NYSE, raise $13 million

Singapore-based Vantage Shipbrokers has received approval from the US Securities and Exchange Commission for an initial public offering to raise around a net $13 million and list on the New York Stock Exchange, three sources with direct knowledge of the matter said Feb. 11.

"Finally, it has been all cleared," one of the sources said. Another source confirmed that "it has been approved". While the second source declined to divulge the date when the IPO will be floated, the first source said that Vantage plans to float the IPO next month.

Vantage's move is significant as it marks the first time in several years that a major tanker broker intends to float an IPO.

A senior Vantage executive declined to comment when contacted by S&P Global Commodity Insights.

The IPO is expected to consist of 3.25 million shares priced at $4-$5 each, translating into a 10.42% stake for the IPO shareholders, the same sources said. According to the preliminary prospectus, Vantage has given the IPO's underwriters an option to purchase up to 15% additional shares from the company within 45 days after the offering has closed.

Immediately after the offering, oil tanker brokers Andresian D' Rozario and Quah Choong Hua will own around 13.03% of shares in Vantage Corp., putting them among the five largest shareholders with equal stakes, it said.

According to the prospectus, 40% of the IPO proceeds will be allocated for global expansion, including the opening of new offices in Houston and Geneva.

Last year, Vantage underwent a corporate restructuring, Vantage Corp. was incorporated in the Cayman Islands on April 2. On the same day, Vantage BVI was incorporated in the British Virgin Islands as a holding company, which is a wholly-owned subsidiary of Vantage Cayman. Vantage BVI has acquired 100% equity in Vantage Singapore and Vantage Dubai.

As a result of this reorganization, Vantage Singapore and Vantage Dubai became wholly owned indirect subsidiaries of Vantage Cayman. The Singapore-based company was founded in 2011, while the Dubai arm was established in 2023.

In the year ended March 31, 2024, the company reported revenue of almost $20 million, down from $24 million the previous year, the prospectus said. Net income fell to $5 million from $5.9 million during this period, it said.

In the six months ending Sept. 30, 2024, net income rose to $4.7 million, up 6% year over year, the preliminary prospectus showed. Revenue during this period increased by more than 11% to just over $10 million, primarily driven by an increase in time charter revenues. The company has strategically shifted toward more term and period charter deals rather than spot fixtures. "These deals offer higher broker commission and a more stable revenue flow," the prospectus said.

Shipping companies often benefit from geopolitical risks and regional conflicts, as such tensions can lead to higher brokerage income due to increased higher demurrage and freight costs.