Vantage Shipbrokers targets global expansion with IPO funds; eyes acquisitions

Singapore-based Vantage Shipbrokers plans to expand operations by establishing offices on all major continents, acquiring other companies and investing in data analytics, utilizing funds raised through a recent initial public offering, a senior company executive said June 20.

"Now that we have raised the money, we are considering using it to have a broking set up in South America, North America, Europe, and Africa," CEO Andresian D'Rozario told Platts, part of S&P Global Commodities Insights.

The company has not yet decided whether to establish its European base in London, Geneva or Athens, D'Rozario said. It may eventually expand operations to Houston, Brazil and Africa. He did not specify a time frame for this expansion.

With the Dangote refinery ramping up production in Nigeria and the Uganda-Tanzania oil pipeline underway, this is an opportune time for a shipping brokerage to establish a presence in Africa, according to D'Rozario.

Last week, Vantage's IPO for listing on the NYSE American stock exchange was bolstered when the underwriter exercised the over-allotment option. The company raised a total of $14.95 million by selling nearly a 12% stake to IPO shareholders and is currently the only shipbroker listed in New York.

Market strategy

Vantage is exploring the possibility of acquiring other companies to expand its global footprint, D'Rozario said.

The company has also invested in data analytics to accelerate the documentation process for shipping fixtures.

After a shipping fixture is finalized, a significant amount of operational paperwork and human intervention is required, which can be minimized through the use of intelligent software, according to D'Rozario.

He cited demurrage negotiations and post-fixture documentation as examples where automation with analytical software can help reduce costs.

D'Rozario said that raising capital through the stock exchange is a viable strategy for global expansion and did not rule out the possibility of selling additional stakes in the company in the medium term, depending on the returns generated from the current funds.

Immediately after the offering, D'Rozario and co-founder Quah Choong Hua hold nearly 13% of shares in the holding company, Vantage Corp., putting them among the five largest shareholders with equal stakes, according to securities filings.

In 2024, 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 wholly owned subsidiary of Vantage Cayman, serving as a holding company. Vantage BVI subsequently 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 entity was founded in 2011, while the Dubai subsidiary was established in 2023.

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