The IPO of HHLA - A Case Study

Seminar paper from the year 2008 in the subject Business economics - Supply, Production, Logistics, grade: 1,0, Hamburg University of Applied Sciences (Wirtschaft / AIM), course: Finance bei Prof. Dr. Decker, language: English, abstract: Hamburg's port, which is also knows as 'Germany's gateway to the world' represents the biggest port in Germany and the ninth biggest in the world. It's continued growth is enormously important for the city and the entire metropolitan area. Two-third of all containers in the port are handled by the Hamburger Hafen und Logistik AG (translated: Hamburg port and logistics AG). It is therefore the biggest company in the harbour and has not only responsibility for its employees but for the whole city and even for the whole metropolitan area. In order to use its potential and to increase the container capacity of the harbour, to construct new hinterland terminals and to expand the geographical reach of the railway network the city of Hamburg had to think about new ways to acquire long-term capital. Hamburg senate decided for an IPO of the so far 100% state- owned company. The decision for an IPO entailed premises, obstacles and risks on the one hand but on the other had decisive augments. The implementation included motives but also preparatory program of analyses, calculations and options. This term paper will illuminate why the expansion of Hamburg's harbour is so important for the metropolitan area and why the Hamburger Hafen und Logistik AG (in the following HHLA) plays such a major role in this field. It will introduce the IPO process and indicate the motives for it. The paper 'IPO of HHLA' will further attend the offering of HHLA shares, the costs and risks of it.