By Alban Kacher
(Reuters) -Shares of Dutch tank storage company Vopak’s Indian joint venture Aegis Vopak Terminals rose on their Mumbai debut on Monday following an initial public offering.
The shares were trading at 242 rupees ($2.83) each at 0654 GMT, around 3% higher than their IPO pricing of 235 rupees ($2.75), which was the top end of the indicated range.
CFO Michiel Gilsing told analysts that the listing price gave AVTL an implied market value of 2.7 billion euros.
Vopak’s shares were 1.8% higher in early Amsterdam trading.
The company has terminals in seven Indian ports and expects to benefit from the dynamic growth of the country’s economy, with Gilsing saying the listing offered opportunities for infrastructure development and acquisitions in the liquefied petroleum gas and chemical sectors.
CEO Dick Richelle added that the offering “strongly supports” Vopak’s strategy of expanding its portfolio of gas and industrial terminals.
“Growth funding at the fast growing Indian JV will be facilitated by the IPO proceeds whilst cash at Vopak Holding is freed up for other growth projects or additional cash returns,” KBC analysts said in a note.
The transaction will result in an exceptional dilution gain of around 110 million euros to be recorded by Vopak in the second quarter, the company said.
($1 = 85.4320 Indian rupees)
(Reporting by Alban Kacher; Editing by Mrigank Dhaniwala, Kirsten Donovan)
