Asian issue looms for GOGL

Anticipation John Fredriksen’s Golden Ocean will launch an equity issue in Singapore was growing today after it completed its dual listing in the Lion Republic.

Shipowner, John Fredriksen.

CEO Herman Billung hints a share issue is on the cards and analysts believe the move has opened the door for Golden Ocean to tap Asian investors.

Billung said: "Initially, we are just doing a transfer of shares but we hope that if and when we raise new equity, we will focus to do it in Singapore.”

He is not willing to discuss how much cash Golden Ocean will want to raise, according to a Reuters report.

Shares in the company last traded at SGD 2.740 ($1.97) in Singapore. Its Oslo shares started brightly, climbing 1.41% to NOK 11.47 each, the exact same level in dollar terms.

Martin Sommerseth Jaer, lead analyst at Arctic Securities, said: “Golden Ocean is already priced in line with most of its foreign listed peers, meaning there should be little additional valuation premium to gain from a Singapore listing.

“The liquidity in its Oslo listed shares is good, but a Singapore presence might increase Golden Ocean’s ability to raise new equity from Asian based investors.”

Jaer adds the new listing may create additional hype for Golden Ocean over the next couple of weeks, which would bring a short-term spur to its stock price.

Golden Ocean is the first company to take up dual listings in Oslo and Singapore, following a cooperation deal penned by the two exchanges last year. FPSO player BW Offshore has revealed plans to follow suit.

Fredriksen is no stranger to dual listings. His flagship tanker company Frontline and Golar LNG both trade in Oslo and the US. A similar set-up is in the pipeline for Seadrill.

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