Stock in the third-party logistics provider began trading on the SIX Swiss Exchange on Friday at an initial price of 27.50 Swiss francs per share.
Global third-party provider CEVA Logistics on Friday kicked off its initial public offering on the SIX Swiss Stock Exchange.
The company priced its IPO at 27.50 Swiss francs per share, the low end of its previously indicated range of CHF 27.50 to CHF 52.50 per share.
Concurrent with the offering, parent company CEVA Holdings LLC will merge with CEVA Logistics AG to create a new holding company for the CEVA group. As a result, the company also will relocate its head management offices from Hoofdorp, Netherlands, to Baar, Switzerland, where CEVA Logistics AG is currently based.
CEVA seeks to raise CHF 1.2 billion from the IPO, including a private placement from French ocean carrier CMA CGM, and will use the proceeds primarily to repay existing debt.
Currently the third largest container carrier worldwide, CMA CGM last week confirmed its intention to acquire a 24.99 percent stake in CEVA, which at the IPO price of 27.5 CHF per share, amounts to about CHF 379 million.
Under the terms of the investment, which will be executed as convertible bonds that will then be converted into CEVA common shares following regulatory approval, CMA CGM will also receive two seats on the CEVA board of directors.
In addition to, the two firms say they will work together to expand their commercial cooperation and develop complementary services aimed at addressing the “increasing customer need for integrated end-to-end solutions and one-stop shop providers,” CEVA said in a statement.
“With this transaction, CMA CGM will expand its presence in the logistics sector, which is closely related to shipping,” the ocean carrier said. “The two companies have agreed to explore together the development of joint commercial offerings, according to terms to be defined in the coming months.”
CEVA, whose three current principal shareholders—Capital Research and Management Co. (26 percent), Franklin Advisers Inc. (25 percent) and Apollo Global Management LLC (22 percent)—will retain a sizable, albeit significantly diluted, stake in the company, first attempted to go public in 2012, but a run of poor financial performance put those plans on the shelf and eventually triggered a financial recapitalization.
“We are proud to open this new chapter for CEVA which builds on the transformation that the company has undergone over the last four years,” CEVA CEO Xavier Urbain said of the IPO launch. “CEVA has successfully repositioned itself among the top third-party logistics providers through its global presence, end-to-end service offering in contract logistics and freight forwarding, its balanced blue-chip customer portfolio and its strong solution capabilities.
“Our aim was to raise 1.2 Bn CHF through the all-primary IPO to strengthen the balance sheet of our company – this objective is 100 percent achieved. It unlocks additional growth potential with existing and new customers.
“Having CMA CGM on board as a shareholder is a sign of confidence and opens up new perspectives for us in the development of complementary services that meet the growing customer demand for integrated end-to-end solutions and one-stop-shop providers,” he added.
CEVA kicks off IPO
