Johannesburg, 19 June 2018:
Grindrod Shipping Holdings Limited
listed on the Main Board of the JSE.
Grindrod Shipping Holdings Limited
is an international shipping company that owns, charters in and operates a fleet of drybulk carriers and tankers. The company owns some of their vessels directly and some of their vessels in joint venture arrangements. The company operates two businesses primarily: the drybulk carriers business, which is further divided into handysize, supramax, and other operating segments and (ii) the tankers business, which is further divided into medium range tankers, small tankers, and other operating segments.
The company listed in the Industrial Transportation Sector of the JSE, making it the 8
company to list on the JSE this year. The sector has a total market capitalisation of R70.3 billion. The transport sector is a key contributor to South Africa's competitiveness in global markets and is as a crucial engine for economic growth and social development.
Donna Nemer, Director Capital Markets at the JSE says, "We are delighted to welcome Grindrod Shipping Holdings Ltd to the JSE. This listing offers positive growth prospects for our investors because our African economies are growing and South Africa is also in the process of revitalising its transport networks, that will see the country set itself up as a transport hub for Southern Africa". Major shipping lanes pass along the South African coastline in the south Atlantic and Indian oceans, which speaks of the sector's strengths and long-term potential for continued growth."
Today's listing follow's the company's conversion in April 2018, when the group changed from a private company to a public company. This conversation subsequently led to the company's name change from "Grindrod Shipping Holdings Pty. Ltd" to "Grindrod Shipping Holdings Ltd."
According to Mike Hankinson, Executive Chairman of Grindrod limited: "The separate listing of the Shipping business, will enable shareholders to better understand and evaluate Grindrod Limited's Freight and Financial Services divisions and better evaluate the separate Shipping business, Grindrod Shipping Holdings. This is a wonderful achievement for Grindrod and will be noted in Grindrod's 108-year history as among the most memorable", said Mike Hankinson, executive chairman, Grindrod limited.
Grindrod's Shipping will be the first Singapore based company to be listed on the JSE and the first company to simultaneously list on Nasdaq and JSE. The separation of the shipping business from the Grindrod Group and separate listing was pursued mainly to enable Grindrod's shareholders to more clearly identify the different characteristics of the Freight Services and Financial Services businesses from the shipping business and to value them separately, Ultimately it will all Grindrod Shipping to list and raise capital in a jurisdiction where shipping is understood.
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