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Talking Point

So how would Mr Vafias like to see buy, carry out very thorough research Two private placements since

this particular relationship develop? “It on what you buy, and be careful when February – one in February courtesy of
doesn’t depend on me it depends on you buy.
Michael Dell’s $33m and another in

him;heistheonewhoisnewinthe early May when the company raised “Now investors are far more
segment and the one who has a $50m from five investors including Mr educated, far more careful and more

hundred other investments,” he said. Vafias himself – means the company thorough in their dealings and can
“How soon he wants to do more and has ample funds for further fleet better distinguish between different

how soon he wants to be more directly investment. The 18 newbuildings the quality companies and between the
involved in the business is up to him company currently has on order in different shipping segments. Last year

and there is no pressure from our side.
Japanese shipyards will bring we saw a huge wave of private equity

StealthGas’ total fleet size to 60 units, “We are one of the most interesting funds pumping money into shipping
giving it a 25% share of the total LPG shipping companies in any shipping but this activity has quietened down

shipping market. As Mr Vafias sub-segment and this relationship only since March as the initial optimism for
contends, these ships have already been started a few months ago so it is a bit the dry and wet sectors failed to

financed so the additional funds will be early to make a definite guess of how it materialise and the market has started
used elsewhere.
will pan out. But he has already made a to get scared that the order books in

10% profit on his investment so that these particular sectors are too big.
The total raised from the capital
means he got in at a very good time.”
markets since StealthGas had its IPO in “Some equity funds are liquidating

2005 currently stands at $550m and its And what of the stock market in their investments in shipping while
fleet has grown from nine ships to 60 general? “It is obvious that investors lost others are keen to do more but only in

with an asset value of $1.1bn.
a lot of money in shipping stocks after specialised segments like LNG/LPG

the meltdown in mid to end ’08 and and offshore where there are higher “Our newbuildings are all financed
they were taught a very significant barriers to entry and smaller order so we have three options to spend the

lesson which is be very careful what you
books,” he said.
$80m on,” he said. Buying second

2014 Issue 61 The SHIP Supplier 51