ACM Shipping Group-off to a nice start
I am pleased to see that ACM Shipping Group got off to a nice start on AIM.
It wasn't the meteoric rise that one sees with some IPOs but given all the dollar worries that have hit ship brokers it's still encouraging.
The group floated at a discount to both Clarkson and Braemar Seascope on 2007 estimates which isn't surprising as ACM have a tighter tanker focus and are the new kids on the AIM block.
As usual, the originally suggested valuation was somewhat higher but was soon reduced following investor comment!
We were very impressed with the management team and the simplicity of the business. ACM has already started some interesting developments in the Far East and the derivatives joint venture with GFI in the US appears to be a success
The post IPO management holdings remain material and locks-ins (up to 3 years) more stringent than most floats we have come across. Perhaps of more concern is management’s ability to balance the demands of the City and broking world. It should be emphasised that all the senior management (including the Chairman who is acting FD) are currently active in the broking/operations arena. The group will also probably appoint a dedicated FD in the not too distant future.
The group also appears to have been highly successful in attracting, developing and retaining key staff since its founding in 1982.
It really was also a pleasure to meet with a team who evidently remained so passionate about their business and who had yet to be tainted by City speak-long may it continue!
It was also highly unusual to find a business of this quality (25 years old, highly profitable and cash generative) offering the added attraction of EIS eligibility-a quirk of the system.
We supported the IPO and look foward to good news over the coming months.
I have a summary note covering the IPO if anyone is interested.
It wasn't the meteoric rise that one sees with some IPOs but given all the dollar worries that have hit ship brokers it's still encouraging.
The group floated at a discount to both Clarkson and Braemar Seascope on 2007 estimates which isn't surprising as ACM have a tighter tanker focus and are the new kids on the AIM block.
As usual, the originally suggested valuation was somewhat higher but was soon reduced following investor comment!
We were very impressed with the management team and the simplicity of the business. ACM has already started some interesting developments in the Far East and the derivatives joint venture with GFI in the US appears to be a success
The post IPO management holdings remain material and locks-ins (up to 3 years) more stringent than most floats we have come across. Perhaps of more concern is management’s ability to balance the demands of the City and broking world. It should be emphasised that all the senior management (including the Chairman who is acting FD) are currently active in the broking/operations arena. The group will also probably appoint a dedicated FD in the not too distant future.
The group also appears to have been highly successful in attracting, developing and retaining key staff since its founding in 1982.
It really was also a pleasure to meet with a team who evidently remained so passionate about their business and who had yet to be tainted by City speak-long may it continue!
It was also highly unusual to find a business of this quality (25 years old, highly profitable and cash generative) offering the added attraction of EIS eligibility-a quirk of the system.
We supported the IPO and look foward to good news over the coming months.
I have a summary note covering the IPO if anyone is interested.