Maritime





Monday November 9, 2009

Hubline raises RM124mil for expansion

By SHARIDAN M.ALI


PETALING JAYA: Container and dry bulk shipping company Hubline Bhd has, via a recent corporate exercise, successfully raised RM124mil to be partly used in its expansion plan.

Its rights issue of up to 621,676,421 new 20 sen shares at an issue price of 20 sen per share together with up to 621,676,421 new free detachable warrants was completed recently and was over-subscribed by 92%.

Dennis Ling says there are good opportunities to choose in an economic downturn

Hubline told StarBiz via email that the proceeds would be utilised partly for expansion as the group was actively exploring opportunities to grow and expand its market share in the shipping industry. For this purpose, the group intends to purchase three to five vessels either in the container or dry bulk shipping business.

Hubline has also been approached by a couple of international shipping groups that are exploring possible divestment of their smaller units to Hubline.

Chairman and chief executive officer Dennis Ling said in any economic downturn, there would always be a good opportunity to pick and choose good potential investments but one must have the funds or cash ready.

With a fleet size of around 40 vessels both in container and dry bulk shipping, the group has been operating in all the intra-Asian ports for the past 16 years.

Besides providing a liner service calling on the major ports in China, India, Papua New Guinea, Hong Kong, Vietnam, Indonesia, Cambodia, Burma, Thailand, Philippines and Brunei, in Malaysia it operates eight container vessels providing weekly service between the east and west Malaysian ports. Hubline closed 1.5 sen down at 26.5 sen on Friday.

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