CAI seeks to raise US$30 million in IPO

CAI INTERNATIONAL, a large lessor of maritime containers, is attempting to raise US$30 million in an initial public offering involving the sale of 2.7 million shares.

The proceeds raised will be used to strengthen the company's general working capital and for other corporate purposes, such as the likely paying down of a portion of a secured credit facility, reports Container International online.

San Francisco-based CAI is also expected to use some of the funds to invest in new containers. At present the group controls about 800,000 TEU, making it one of the largest container rental businesses worldwide.

This year has seen an expansion of the company's inventory, which according to the offer document, increased by more than 23 per cent in the first nine months of 2010 compared with the same period last year.

According to the report CAI "is also using the strength of the present day market for the IPO, with the shares on offer being divided equally between, on the one hand the company and on the other the Development Bank of Japan and Hiromitsu Ogawa, the founder and chairman of CAI."

Credit Suisse Securities and Keefe, Bruyette & Woods have been appointed as joint book-running managers for the offering and Piper Jaffray will act as co-lead manager for the IPO.
(Source:www.schednet.com)