Trans Polonia – nearly PLN 50 mln for further expansion of the biggest tanker truck fleet in Poland

May - June 2017

Trans Polonia – nearly PLN 50 mln for further expansion of the biggest tanker truck fleet in Poland

Our relationship begun at a breakthrough moment in the thirteen-year history of Trans Polonia (TPG) - the company has just acquired Orlen Transport, becoming the domestic leader in the logistics shipments of vehicle and aviation fuel, as well as LNG. This exponential increase in the scale of operations has prompted TPG to open up to institutional investors - a visible boost in the level of interest and improved sentiment have convinced TPG to reach for another milestone - an investment program for the years 2018-2020, to be financed largely via a secondary public offering. InnerValue has assisted the company in that process, which concluded successfully with the raising of PLN 49.3 mln in new equity.

STARTING POINT:

Prior to the acquisition of OTP in February 2016, Trans Polonia was an operator of logistics and transportation services, offering tanker truck shipping services of liquid chemicals, liquid bitumen and food products. The takeover has not only facilitated an entry on the fuels market and improved TPG’s financials, thanks to the multiple-fold expansion of its tanker fleet, but even more so, it has changed the perception of TPG among its clients (particularly in Western Europe), but also among investors and analysts on the Polish capital market. At that moment, external IR support proved really useful.

With the publication of TPG's first consolidated results in May 2017, InnerValue begun systematic development of relations with the financial media, stockbrokers and investment funds, building the profile, highlighting competitive advantages and strengthening the company’s image as an expert in liquid logistics of industrial goods (fuels, chemicals, foods, liquid bitumen). Between March and June 2017 it has intensified efforts prior to the SPO, which, despite the absence of retail investors, ended up being oversubscribed by financial institutions.

KEY COMMUNICATIONS MESSAGES IN THE CAMPAIGN PRECEDING THE SPO:

  • Growing presence and position of TPG on the international market for petrochemical logistics (negligible market share, a potential for exponential growth) and a solid and at the same time growing client portfolio, which includes some of the leading chemicals plants in Europe;
  • Trans Polonia is one of the beneficiaries of new regulations which restrict the gray market in the fuels trading segment (new fuel trading and shipping regulations);
  • A noticeable improvement of the situation on liquid bitumen market (the start of investments in infrastructure), backed by higher revenues and the volume of goods shipped;
  • Active participation in the SPO by The Chief Executive and The Main Shareholder of Trans Polonia;
  • Syntaxis Capital: a long-investment, assessment of TPG’s progress and development;
  • OTP - highlighting its position as the leader on the market for tanker truck fuel shipments and its potential for further expansion.

CAMPAIGN SCOPE:

  • Arranging numerous press and video materials which present the activities, prospects and the basis of TPG’s Investment Program;
  • Organizing an investor conference about the Investment Program for 2018-2020;
  • Organizing a conference for journalists upon the publication of the issuing prospectus to discuss the SPO;
  • Recommending to TPG to publish estimated 1Q results and the associated communication;
  • Recommending that the company publishes monthly sales data divided by segments (validates strong growth in the field of liquid chemicals shipped on international routes);
  • Arranging an extended press report from a study tour for investors to the Antwerp region.

SCOPE OF DAILY COMMUNICATIONS (in addition to the above):

  • An all-around communication program relating to financial results - organizing events and preparing presentations for investors and journalists, including conferences and one-to-few and one-on-one meetings;
  • Ongoing communications with buyside and sellside analysts - serving as the first point of contact for IR (meetings, recommendations);
  • Arranging media publications about current events at TPG (both print and video) as well as individual interviews with journalists from the most popular titles in the financial media and newswires;
  • Arranging the presence of company representatives to serve as experts in financial and trade media;
  • Drafting content related to stock market reporting, including annual letter from the CEO, editing the descriptive parts of TPG’s financial reports;
  • Daily monitoring of the information which appears in morning reports distributed by stockbrokers.
  • Contact with retail investors.

GOALS:

  • Developing and boosting the level of interest in TPG - the activities, conducted throughout the year, brought the company into a spotlight before investors who previously were not aware of the company and focused the attention of those who already knew it;
  • Supporting a successful SPO - highlighting the competitive pressures and details of the company’s investment plans;
  • Education about TPG’s business model (lack of comparable peers on the WSE);
  • Diversification of the shareholder base.

THE RESULTS:

The activities initiated by InnerValue, including both routine IR tasks and the more comprehensive services, along with a saturation campaign prior to the SPO, have helped the company sell all the shares offered, raising a total of PLN 49.3m. These funds will be used towards the 2018-2020 Investment Program, including a significant expansion of the vehicle fleet (112 tankers and 40 semi trucks) in Poland and above all on foreign markets. In addition to the information and promotional efforts, InnerValue was supporting the company in the process of gaining investors ready to participate in the secondary offering.


We are continuing our relationship with the company after the successful SPO.

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