Costamare Inc. sold $160 million of shares in its U.S. initial public offering after investors extracted a 29 percent discount from the Athens-based owner of container ships.
The company sold 13.3 million shares for $12 apiece yesterday, after offering them for as much as $17 each, a filing with the Securities and Exchange Commission and data compiled by Bloomberg showed. Costamare’s shares slipped 1.3 percent to $11.85 in New York Stock Exchange trading today.
Costamare was the fourth non-U.S. company this week to complete its sale in New York. Overseas companies have accounted for about 30 percent of the $18.8 billion raised from U.S. IPOs this year, according to data compiled by Bloomberg that exclude closed-end funds and investment companies. The last three shipping companies that sold shares in the U.S. have all left IPO buyers with losses, the data show.
“There are a lot of competitors in this industry, and a new entrant is not going to demand a premium,” said Sean Kraus, who oversees about $2.2 billion as chief investment officer at Citizens Business Bank in Pasadena, California. “To demand premium pricing or to expect pricing power or rapid growth based on their end markets is probably not on the cards.”
The shipowner’s revenue decreased 14 percent to $179 million in the first six months of the year, the filing showed. Net income declined 35 percent.
The Konstantakopoulos family, which owns Costamare, will retain at least 75 percent of the shipowner after the IPO, according to its filing. The company, which owns 41 container ships, may use proceeds to help finance the purchase of more vessels, according to its prospectus.
Monaco-based Scorpio Tankers Inc., the last shipping company to sell shares in New York, has declined 9.5 percent since its offering in March. Piraeus, Greece-based Crude Carriers Corp. and Baltic Trading Ltd. of New York, which completed IPOs in the same month as Scorpio Tankers, have fallen 7 percent and 16 percent, respectively.
Morgan Stanley of New York and Charlotte, North Carolina- based Bank of America Corp. led Costamare’s sale. Cravath, Swaine & Moore LLP in New York provided legal counsel.
Three U.S. companies are scheduled to offer shares today. Fresh Market Inc., the Greensboro, North Carolina-based grocer, is attempting the biggest IPO of the week with a $264 million offering, data compiled by Bloomberg show.
The grocery chain is selling 13.2 million shares at $18 to $20 each, its SEC filing showed. At the middle of the forecast range, Fresh Market would be valued at 16.4 times net assets, according to IPODesktop.com.
That’s almost six times higher than the ratio of 2.9 for Austin, Texas-based Whole Foods Market Inc., which Fresh Market identified as a competitor in its regulatory filing.
Both grocery chains are valued at 25 times estimated earnings, according to IPODesktop.com.
Primo Water Corp., the Winston-Salem, North Carolina-based provider of bottled water and water dispensers, and Cutanea Life Sciences Inc., the Malvern, Pennsylvania-based developer of treatments for skin conditions such as rosacea and acne, are also to planning to sell shares today, Bloomberg data show.