Initial public offerings (IPO) are the stuff of most startups' dreams, yet whereas they have been a strong vehicle for exits in other sectors, the rare yachting firms that have listed their shares on public markets have often struggled to perform on stock exchanges.
In July 2017, Global Yachting Group, the holding company behind several superyacht painting and maintenance brands such as Pinmar and Rolling Stock went public on London's AIM exchange. This followed a management buyout backed by private equity firm Lonsdale Capital in 2016. With revenues of €54.6 million in 2016 and an EBITDA of €6.7 million, the holding was valued at £55 million following its IPO.
Since, however, its share price has dropped from over £140 per share to just £34, and its market capitalisation dropped down to just £16.25 million, nearly a 70% drop in just over a year. The drop was primarily caused by the market reacting poorly to a drop in new build business secured by the group, which broke even in the first half of 2018. In its statement, Remy Millot, however remained confident business would pick up in coming quarters.
On the brokerage side, YCO has famously been the highest profile firm to attempt a public offering on London's AIM exchange back in 2008. Its shares were then trading at 49 pence per share on the back of high profile clients and revenues leading to a valuation of near £25 million. Shareholders included the co-founders, the Monegasque Pastor family, and a set of investment firms. However, after 4 years of a difficult market, its share price dropped from 49p to 3p per share.
Ultimately, YCO chose to delist from the public markets in 2012, despite recording £27 million in revenue in 2010 and £588,000 in net profits. After delisting, Fifty Four Four Ltd, a company owned by Charles Birkett, YCO founder and CEO, gathered 50.4% of YCO Group's share capital and made a mandatory offer to the minority to buy them out at 1p per share, giving the business a £485,000 valuation. Since delisting, YCO has continued to be a dominant player in the superyacht brokerage and management space, representing yachts such as the 119-meter M/Y A at one time.
The drive of the superyacht market to make an IPO work likely comes from the success of the strategy in the smaller boating segment. Beneteau, one of the largest players in the space with sales of over €1.2 billion in 2017, has been public since 1989, its share value rising over 700% since. Primarily active in 10-20m boat construction, the company is currently sitting at a market cap of €1.16 billion.
MarineMax, a leading US boat dealer went public back in 1998 at $13,75 per share, trading today at twice the valuation after a strong 20x recovery since the 2008 financial crisis, which saw its stock fall to under $2 per share in 2009. Today MarineMax is valued at over $600 million. Mastercraft, the famous powerboat manufacturer went public in 2015 at under $16 per share and trades today at over $32 per share with a valuation of over $600 million.
Superyachts' difficult financial forecasting and small market in absolute unit numbers continues to puzzle public investors, strangling the sector into resorting to purely private funding and capping its exit potential. Some, however, remain on the hunt for a formula to solve the public markets for superyachts with leading companies like Gulf Craft contemplating a listing in the near future.
The brand new superyacht Olivia O has been recently seen on the French Riviera. Planning and engineering work began on the boat in November 2016 and earlier in 2020 the superyacht was finally delivered to her experienced owner.One of the largest explorer yachts in the world was designed and built by Ulstein Verft, which is known for commercial vessels, ferries, and workboats. Well-known superyacht designer Espen Oeino was chosen by the owner to develop the exterior lines and the general arrangement of Olivia O. The 88.5 m motor yacht is not typical in style, she features a trademarked reverse-bow design called the X-Bow.She is owned by Eyal Ofer, a Monaco based billionaire, active in shipping and real estate. He is not the last man in shipping indeed since in 2014 Eyal was ranked number 7 in Lloyd’s List 100 People in Shipping. With the net worth, which is estimated at US$ 9.4 billion, he definitely can afford this US$ 200 million luxury superyacht. Eyal is Chairman of Ofer Global, Zodiac Group, and Global Holdings. His father Sammy Offer was Israel’s richest man.Some of her impressive highlights are a large swimming pool on the main deck aft and a helicopter deck with a D-value of 16. Olivia O offers accommodation up to 20 guests in 8 cabins, including Pullman bunks while crew accommodation is for 30 people.
July 10, 2020
The 99.95 m superyacht Moonrise, the largest superyacht by waterline length built in the Netherlands to date, has been recently delivered after successful sea trials in the North Sea. Built by the Feadship yard in Makkum, she also has an impressive volume thanks to a 15.50-metre beam.The shipyard described the yacht's key features as “sleek, sensual lines” with a “modern masculine profile”. Some of the highlights of Moonrise are it's a large beach club, a gym, and the huge living space areas.Her stylish details, such as long hull windows, a glorious grey hull, and striking vertical bow add to the elegance of the design by Studio De Voogt. The interior of the boat was created by Remi Tessieir Design.Moonrise has a 15.5-meter beam and is equipped with a pair of MTU engines for a maximum speed of 19.5 knots and a cruising speed of 16 knots.Moonrise equipped with a pair of MTU engines for a top speed of 19.5 knots at top speed and she is designed to cruise comfortably at 16 knots. The dimensions of the yacht are impressive and can accommodate up to 16 guests in 8 staterooms. There are also exceptionally high-end crew accommodations for up to 32 crew members.
July 10, 2020
Lürssen's superyacht Opus, which was previously named Redwood, hit the sea for the first time. The 142m vessel featuring six decks was launched yesterday July 9th. The technical concept was launched in January 2019.The management of project Opus is done by Moran Yacht & Ship, overseeing the construction process. This project sets a new record as the largest project for the company to sell.Moran Yacht & Ship commented:She is feature-rich with high-end amenities to delight and cater to every imaginable whimThe motor yacht can accommodate 36 guests in 20 cabins. Opus was designed by Italian design studio Nuvolari & Lenard. After the sea trials are completed, Opus will be delivered to her owner later this year.
July 10, 2020
Madame Gu is a 99.00 m luxury motor yacht. She was built by Feadship in 2013. This week this majestic superyacht has been seen in Saint Tropez. With a beam of 16.50m and a draft of 4.60m, she has a steel hull and aluminium superstructure. This adds up to a gross tonnage of 2900 tones.Madame Gu is powered by MTU 20V 4000 M73 engines of 4,828hp each, capable of reaching a maximum speed of 24 knots and cruise at 22 knots.She can accommodate 12 guests in 6 cabins including a master stateroom and five guest cabins. Both, an interior and exterior design by Andrew Winch make up one of Holland’s largest yachts ever built. The superyacht a fully enclosed helicopter hangar with a Eurocopter Dauphin AS 365N3, which costs around US$ 9 million. Also, there are two 11-metre tenders and scuba gear as well as a beach club, gym, and jacuzzi on deck.
July 9, 2020
Lürssen shipyard delivered 180 metre superyacht Azzam in 2013. With such an impressive length, she is the largest privately owned superyacht in the world and held its title unchallenged for nearly seven years. With a beam of 20.8 m and a draft of 4.3 m, she has a steel hull and aluminum superstructure. This adds up to a gross tonnage of 13136 tons. Azzam is powered by engines of 23,500 hp each giving her a maximum speed of 30 knots.The all-white motor yacht can accommodate guests in cabins with an interior design by Christophe Leoni and an exterior design by Italian studio Nauta Design.Mario Pedol, co-founder of Nauta Design commented:Azzam features balanced, modern architecture composed of straight lines and proportional volumes, which are some of the main design principles of Nauta Design When we were called to participate in pitching for the exterior styling of this yacht we knew it would be the most demanding work of our career, defined by the strictest and most challenging requests in terms of dimensions, performances, and technology. What made us confident to be able to deal with such a challenge was the interpretation of the client’s brief. The best technology was required in order to obtain the highest performance possible.There is not much information about her interior design, but it’s not a secret that the interior layout includes an open-plan main saloon measuring 29 metres by 18 metres.Pedol said about it:We’ve had a lot of compliments for Azzam. They all talk about elegance and balance, that she doesn’t look as big as she is, and I think this is a good achievement.
July 9, 2020