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- STST operates with massive levels of debt and leverage that make this a risky position.
- STST will need to raise debt, or dilute shareholders on a regular basis going forward.
- STST will need a flawless execution of their growth strategy and help from financing to remain solvent.
- Recently organized under the laws of the Republic of the Marshall Islands to own and operate a fleet of mid-size stainless steel chemical tankers.
- Will initially operate a fleet of five stainless steel chemical tankers.
- The IPO market is not too receptive to yet another start-up tanker company.
- STST is a Greece based firm that was recently formed to own and operate mid-size stainless steel chemical tankers.
- STST plans to raise $150 million in its upcoming IPO, aiming for a market value of $188 million, with a target price of $11-$13 per share.
- Given STST’s reliance on the uncertain recovery of the shipping market, and lack of operating history, we suggest investors steer away from this IPO.