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Danaos shares slip in New York market debut for Greek shipping firm

Danaos shares slip in New York market debut for Greek shipping firm

Shares of Danaos Corp. fell slightly Friday, as the Greek shipping company had its trading debut on the New York Stock Exchange.
In early afternoon trading, the shares were down 15 cents from the IPO price of $21 (euro16.58).
Danaos sold 10.25 million shares at the midpoint of an expected price range of $20 (euro15.79) a share to $22 (euro17.37) a share. Underwriters for the offering were Merrill Lynch & Co. and Citigroup Inc.
Danaos, based in Piraeus, Greece, counts itself among the 10 largest containership owners in the world. It owns 27 containerships and has building contracts or agreements for 16 more through 2009. Marine transportation companies have had mixed IPO receptions over the past 12 months, as charter rates have declined and investors' concerns have grown about future overcapacity in an industry that is ramping up the pace of new ship building.
Two of the four shipping companies that have come public since September 2005 _ Omega Navigation Enterprises Inc. and StealthGas Inc. _ remain below their IPO prices to date.
Shipping companies have tried to attract investors with generous dividends, and Danaos is no exception: It plans to pay out $1.76 (euro1.39) a share annually, an 8 percent yield.
In the first six months of the year, Danaos' operating revenue declined 8 percent to $114.5 million (euro90.4 million) compared with the first half of 2005, due to a $21.5 million (euro17 million) decrease in revenue generated by its drybulk carriers. Its net income declined 39 percent to $44.4 million (euro35 million) during that period, as interest and other expenses dragged on profits.


Updated : 2021-03-07 18:02 GMT+08:00