Are privately owned shipping companies more succesful than public listed ones?

• Main Author: Zhang, Allen Tongren
• Other Authors: Kenneth Tan Siah-Ann
• Format: Final Year Project
• Language: English
• Published: 2017
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/71599
• Institution: Nanyang Technological University

Public listed companies always give a glamourous image that a company could ever become. Their names are well known by all walks of life and their shares are freely traded on the stock market. People are willing to pour money into them as they are deemed to be successful enough to become listed in the market. However, being a public listed company not necessary to imply the company is successful especially for shipping companies where long term planning is more crucial to achieve business success. This report tries to assess the successfulness of the company from a brand-new approach – the ownership of the company. Report focus is on tanker shipping companies which would differ from dry bulk and container liner companies. Some advantages for public listed company are cheap financing through IPO, diversified risks and prestigious name. Whereas the advantage for private companies are that swift decision-making process, absolute control of the company and confidential financial statement. Most tanker market players would prefer to stay private as for easy control and long term strategy planning. Public list companies need to have heathy motivation behind the listing and strong drive to make company successful. Privately owned or publicly owned may not play the fate determining role as the more important factors are the nature of the business and the person behind the business.