IPO Analysis: Harbor Star Shipping Services (TUGS)

James Ryan Jonas

Should you take part in the initial public offering (IPO) of TUGS or Harbor Star Shipping Services Inc.?

No one can determine for sure if the price of TUGS will appreciate or depreciate after its IPO. In reality, there’s no one, ultimate recommendation as regards the performance of a stock’s IPO. But it does help to have guidance from the Philippines expert stock brokers!

Another useful source of information is PinoyInvestor, a premium stocks newsletter that consolidates stock picks, company analyses, and broker reports from five of the Philippines’ top stock brokers.

In this week’s issue, the PinoyInvestor Stocks Report offers a comprehensive analysis and recommendation on the upcoming IPO of Harbor Star Shipping Services Inc. (TUGS).

Here are basic information about the TUGS initial public offering.

Harbor Star Shipping Services Inc. (TUGS)

Harbor Star Shipping Services is the leading shipping services company in the Philippines offering harbor assistance, lighterage, towage, salvage, and other marine services. It has a fleet of 27 tugboats, one anchor handling tug supply, three barges, a cargo vessel and an oil spill response vessel. Harbor Star has operations in 12 ports nationwide. It serviced approximately 5,658 ship calls in 2012; 92% of which were foreign ship calls. The major ports that Harbor Star services are the Manila International Container Terminal (MICT), Bataan, Batangas, Cagayan de Oro and Davao ports.

Harbor Star or TUGS is offering 181.60 million shares priced at P1.88 per share. The expected capital to be raised is at least P341 million. P118.55 million is planned to be used to pay debt that was used to acquire an AHTS vessel. P99.68 million of the proceeds will be used to acquire new tugboats. Meanwhile, P45 million will be used to retire debt and the remaining P40 million will be used to acquire an LCT barge.

Should you invest in the TUGS IPO?

To learn more about the valuation, profitability, and financial condition of Travellers Hotel Group, sign up or login to PinoyInvestor to access this week’s Stocks Report. The report also contains the recommendation of Angping Securities as regards the RHHI IPO.

Here’s a preview of the issue on “Analysis of Upcoming IPOs in the Philippines”.

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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.