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Financing Structures in the Shipping Industry:
By Wee Beng Geok & Ivy Buche |
Abstract
Singapore's first shipping trust – Pacific Shipping Trust's (PST) initial public offering (IPO) launched in May 2006 presented an alternative source of funding for ship owners and operators. Six months later, after announcing higher than promised yield to the investors, the trust manager – PST Management Pte Ltd was eager to enhance and diversify both its asset as well as customer base. However, over this period, the share price had fallen below the IPO price and trading volumes were relatively low.
The case describes the challenges faced by PST Management in growing the trust – what steps could be taken to generate awareness about the business of shipping and the role of shipping trusts? How could they improve market perception and enhance investor confidence in PST as an attractive investment option?
This case was commissioned by the Maritime and Port Authority of Singapore (MPA).
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Issues: Ship Financing Alternatives, Shipping Trusts
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