Volare, which is backed by Trafigura, has successfully raised $500 million in funding through the sale of new shares, reaching a valuation of $1.2 billion. This action is part of the planning for its entry into the Oslo Stock Exchange, with the post-financing value of the company estimated at around 11.5 billion Norwegian kroner (NOK), equivalent to $1.2 billion.
Details of the Capital Increase
During this period, Volare has offered 30.7 million new shares at a price of 154 Norwegian kroner per share in a private placement, which has been met with strong interest from investors in the shipping industry, families, and institutions. Additionally, there is an option to add another 4.6 million shares, which, if fully utilized, would bring the total to 35.3 million shares valued at 5.4 billion Norwegian kroner.
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After the full utilization of this option, Trafigura Volare Holdings will hold approximately 53% of the company's shares, while investors will acquire nearly 47% of the shares from this private placement.
Purpose of the Capital Increase and Future Plans
The net proceeds from this financing are intended to fund Volare's new construction plans, reduce debt, repay intercompany loans, and for other corporate purposes. The company intends to apply for admission to the Euronext Growth Oslo market, with the first trades expected to begin around October 5 under the VLCC brand.
This capital increase comes just days after Volare was introduced as the exclusive owner of Trafigura's growing VLCC fleet. Volare starts with six VLCCs currently in operation and plans to gradually add eight more new vessels to its fleet by 2028. Trafigura will continue to manage the commercial operations of this fleet through its global shipping operations.
The eight new vessels are larger than VLCC standards and include additional tanker coverings and heating systems to enhance loading capabilities. These vessels will also be built with dual-fuel ammonia capabilities. When this program is completed in October 2028, the Volare fleet is expected to average three years of age across its 14 vessels.
This public market instrument is alongside one of the largest leasing operations in the shipping industry. Trafigura manages around 500 vessels across various sectors, including approximately 250 tankers.
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