Investors swoop on $62m Sealink private placement

As the prospect of having a West and Central Africa maritime shipping operating company continues to grow, investors have also been taking advantage of the Sealink placement offer, which they expect will turn in huge returns after two years.

The private placement is currently taking place by way of offer for subscription of 89,036,956 ordinary shares at $0.70 per share, all of which are worth $62.3 million.

Already, 10 million ordinary shares have been issued and fully paid as local investors’ appetite in the project continues to rise. This initiative is championed by the Nigerian Export-Import (NEXIM) Bank, the Federation of West African Chambers of Commerce and Industry (FEWACCI), Sealink Promotional Company Limited and Transimex, while FBN Capital Limited is the financial adviser and issuing house.

According to the promoters, the purpose of the ongoing offer is to raise funds needed to acquire sea-going vessels for conveying people and cargo across the West and Central Africa coast.

The project to be undertaken include vessel acquisition which will cost $47 million; spares $2.35 million; other equipment $6.37 million; and a three-month working capital of $4.3 million.

“The Sealink project is worth investing in. We need to be interested in investing in the project because it would facilitate the realisation of enormous trade-related benefits, such as reduction of non-tariff barriers to trade, elimination of transit corridor issues, reduction of transaction costs to economic operators, as well as enhance fiscal benefits to various governments through formal and documented trade,” said Roberts Orya, managing director/CEO, NEXIM Bank, in Lagos.