STJ Advisors advises funds managed by Oaktree Capital on $185m accelerated bookbuilt placement in Hafnia Limited

8 September 2022

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We are pleased to announce that STJ advised funds managed by Oaktree on a $185m ABB sell down of shares in Hafnia Limited, one of the world's leading product tanker owners and operators.

The sale represents c. 8.8% of the company and 45 days’ trading volume, 50% larger than the EMEA average YTD. Oaktree's stake in Hafnia following the transaction will be c.10%.

 The final placement price of NOK42 is flat to the 30-day VWAP, with the sale executed on the back of a 165% price gain during 2022 having reached an all-time high the day prior to pricing.

 The official books covered message was issued c. 30 minutes after launch, with strong support from wall-crossed investors and those met post-results.

 The final book consisted of over 170 orders and was well oversubscribed, strongly anchored by high quality blue-chip investors.

 This offering was achieved despite volatile markets and EMEA Follow-on volumes down c. 70% YTD and 86% during Q3 and with the VIX index trading above 26 for the week.

 The success of the block adds to the consistent track record of STJ advisory on follow-ons where we continue to pride ourselves on being able to advise on tactics to obtain sufficient visibility on demand as a pre-condition to launching the deal and de-risking the offering in volatile markets.

 On this transaction, STJ:

  • Developed the Hafnia investor engagement plan working with the Company to optimise the non-deal roadshow outreach and expand the potential demand universe
  • Worked closely with a mix of domestic and international banks to broaden investor coverage
  • Advised on tactics to obtain sufficient visibility on demand ahead of launch to de-risk the deal and right size the transaction at launch
  • Advised on the targeted wall-crossing exercise of a selected group of relevant investors, generating quality demand from both international and domestic accounts
  • Advised on bookbuilding tactics, including messaging on books covered, pricing guidance to promote a strong book at the ultimate pricing level of NOK42 to promote a healthy aftermarket
  • Worked closely with the banks diligently reviewing allocations to every investor and balancing the book to ensure a stable aftermarket despite a volatile market backdrop 
  • Deployed STJ’s proprietary Atlas Database to help identify investors most likely to buy Hafnia shares (and align individual bank accountability by investor/location) as well as to inform our recommendations on allocations 

Provided critical advice around bank selection, fees, timing, sizing and ultimate pricing tactics and allocations to achieve an optimal transaction in Hafnia for Oaktree within a day of shares reaching an all-time high

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