Grindrod Shipping (GRIN) - F-3 Filing Should Improve Financial Flexibility and Trading Liquidity - Price Target Up Again
Grindrod Shipping (GRIN)
F-3 Filing Should Improve Financial Flexibility and Trading Liquidity - Price Target Up Again
Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE. Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Recent F-3 filing should be positive for trading liquidity. Previously, three large shareholders had not been allowed to sell shares in US and the F-3 filing will facilitate sales of 8.09 million existing shares in US. Timing is uncertain, but trading will likely migrate to US over time. GRIN also filed to issue 3.86 million new shares, but we believe that filing creates flexibility with equity issuance near current stock prices very unlikely and stock buy backs are more likely.
Fine tuning 2021 EBITDA estimate to $158.8 million from $153.7 million. Visibility is solid with forward cover of 3,012 3Q2021 available days (~75%) booked at an average TCE rate of $28.3k/day. Our 3Q2021 EBITDA estimate of $58.6 million is based on TCE rates of $30.0k/day for Supras/Ultras and $25.0k/day for Handys. Our 4Q2021 EBITDA of $45.0 million is based on ...
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.