Cargohub: first company listed in Euro on Mauritius stock exchange
The logistics firm will subsequently seek to expand its activities in the Indian Ocean region and, at a later stage, penetrate the African continent. (Image: Board of Investment)
The Stock Exchange of Mauritius (SEM) has granted approval for the listing of logistics firm Cargohub Capital on its Development & Enterprise Market (DEM), making it the first company to sell euro denominated shares on the SEM.
The listing executive committee of the stock exchange approved the admission of the company on the DEM as on January 7, with the sale of ordinary shares to start on January 23. It may be noted that the DEM caters to small and medium-sized enterprises as well as newly set-up companies which possess good growth potential.
For the first trading session, Cargohub will make available for sale a minimum of 5,000 ordinary shares up to a maximum of 169,200 ordinary shares (representing 15% of the share capital of the company) at Euro 30 per share.
In all, Cargohub intends to raise capital amounting to Euro 33.84 million vide the issuance of 1,128,000 ordinary shares. It may be noted that the equity value of Cargohub was determined at Euro 33.76 million as on 30 September 2013, basis a valuation report by global consulting major Ernst and Young.
Regarding the choice of Mauritius for its initial public offering (IPO), the management of Cargohub noted that Mauritius acts as a bridge between Asia and Africa and between Europe and the Indian Ocean – Africa and Indian Ocean being CargoHub’s intended future markets for logistics.
The company added that it was thus natural to choose Mauritius for its IPO, where the financial sector stands at the crossroads of its chosen markets enabling it to cover all types of investors.
The IPO is key from a strategic and economic point of view, not only for the company itself but also for the logistics and financial hub in Mauritius, the company highlighted.
Through opportunities for acquisitions and joint ventures with regional players, Cargohub intends to settle permanently in the region while deploying its expertise and services with high added value, the management concluded.
Currently, the company intends to achieve growth through the provision of services in Mauritius and potentially acquire a local company involved in the provision of logistics services.
It will subsequently seek to expand its activities in the Indian Ocean region and, at a later stage, penetrate the African continent.
Cargohub Capital Ltd
Cargohub Capital started it operations in Mauritius in May last year. The main objective for which CCL was established was to serve as an investment holding company for Global Logistics Services (GLS), a European investment structure registered in Luxembourg, which is dedicated to the transport and logistics sector.
GLS operates mainly in France and Luxembourg and is also present in Russian and Dubai.
In 2012, the bulk of the company’s revenues (61%) came from the consulting and logistics businesses, 39% from real estate, while the contribution of the trucking business was nil. Trucking activity started in 2013 and its contribution is expected to reflect in 2013. For 2013, GLS anticipates a profit of Euro 3.4 million.