News / IPO brings in HK$941m for TS Lines to finance network expansion

Photo: TS Lines

Taiwanese liner operator TS Lines’ initial public offering (IPO) on the Hong Kong Stock Exchange raised HK$941m ($121m) after its listing today.

The funds raised were, however, short of the $145m TS Lines had originally targeted.

The company issued 250m shares at between HK$3.50 and HK$4.50 each, with the final offer price at HK$4.18 (US$0.54) per share.

JP Morgan and China Merchants Securities were joint bookrunners for the IPO, which was subscribed 12.09 times, while the international offering was subscribed 2.22 times.

Launched as an intra-Asia carrier, TS Lines was founded in 2001 by Chen Te-sheng, who is from the family behind the more established Wan Hai Lines.

TS Lines entered the long-haul trade lanes with transpacific and Asia-Australia services during Covid-19 and, after suspending these routes as the pandemic-induced boom evaporated in 2023, resumed this summer as the Red Sea crisis helped rates recover.

The market correction last year saw TS Lines incur a gross loss of $33.8m, but in the first four months of 2024, the recovery helped the carrier achieve a gross profit of $7m.

Now, TS Lines is expanding its portfolio, with services to East Africa and the Middle East, and half the proceeds from the IPO will go towards financing orders for two new 7,000 teu ships, while the remaining funds will go towards chartering vessels and ordering new containers.

The owned ships could be assigned to Far East-Indian subcontinent, Asia-Oceania or Far East-Middle East services, after delivery in 2026 and 2027.

Meanwhile, TS Lines has two 14,000 teu vessels on order, as well as two 4,300 teu ships.

According to Alphaliner data, the company now ranks 21st in the list of liner operators, with its current capacity of 101,503 teu on 37 owned and five chartered vessels.

While there was strong investor interest in the IPO, TS Lines’ stock price stayed flat on the first day of trading, opening at HK$4.18 and closing at HK$4.10.