TAIWANESE container carrier TS Lines has launched its long-awaited listing, aiming to raise up to HK$1.13 billion (US$145 million) through a Hong Kong flotation to fund fleet expansion.

The specialist in intra-Asia feeder services will offer 250.9 million shares, priced between HK$3.50 and HK$4.50 per share, with an expected listing date of November 1, according to a filing with the Hong Kong Stock Exchange.

This marks TS Lines' third attempt at a listing, supported by a freight market uplifted by the Red Sea crisis. Previous efforts in October 2022 and April 2023 were unsuccessful due to market downturns following the post-Covid lockdown boom.

As the first Taiwanese carrier to be listed in Hong Kong, TS Lines has secured subscription commitments of US$63.9 million from cornerstone investors including Indigo Rainbow, Hung Chili, Worldwide Logistics, Metro Shine, Wang Yifen and Crane Movement.

The company intends to use the proceeds from the initial public offering for two 7,000 TEU newbuildings ordered earlier this year, with the remainder earmarked for a vessel chartering contract, container leasing and general working capital requirements, according to the filing.

In addition to the two newbuildings, the Taipei-based company also anticipates the delivery of a 7,000 TEU vessel by the end of 2024. It has also placed orders for two 4,300 TEU and three 14,000 TEU new vessels, with deliveries expected in 2027.

Company now has six ships - two 14,000 TEU and four 7,000 TEU - on order, all from CSSC's Shanghai Waigaoqiao Shipbuilding.

At the end of April this year, TS Lines had a fleet of 46 vessels, including 36 owned vessels and 10 chartered-in ships, with a capacity of 111,011 TEU, and was ranked as the 21st-largest container shipping company globally.

Most of the young fleet, which has an average age of 3.5 years, comprises small-sized vessels, each with a capacity of less than 2,000 TEU, enabling access to most ports in the Asia-Pacific region.

By the end of April, TS Lines' container shipping network covered 21 countries and regions, along with 56 major ports worldwide.