Tuesday, September 28, 2021

Grindrod Shipping (GRIN)
Secondary Offering Improves Public Market Float

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.

Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Secondary offering enhances trading liquidity.  Grindrod Limited, the former parent, sold 1.84 million shares last week in a secondary offering at $13.50/share pursuant to a F-3 filing dated August 23rd. While the offering was priced at a 14% discount to the previous closing price, the stock rebounded quickly and closed yesterday ~13% above the offering price. We view the offering favorably since the public market float increased to 13.1 million shares, or 68%, and trading liquidity is likely to improve.


No change to current 2021-2 EBITDA estimates and variable dividend policy on horizon.  Our 4Q2021 dividend estimate is $0.61/share, including cash of $0.54/share and buybacks of $0.07/share. As highlighted in recent notes, the variable dividend will consist of a combo of buybacks and cash. As of August 30th, 91,871 shares were bought back at an average $14.87/share so total dividend will include …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.