THE owners of Hapag-Lloyd will aim for a initial public offering in mid-April with a target valuation of US$5 billion, according to the German carrier and its major shareholders TUI and the Albert Ballin consortium.

The partners are to valuate between $4.1 billion and $4.8 billion seeking bids from strategic and financial investors to acquire minority stakes in the Hamburg-based shipping line. A minority share between $1.4 billion and $2 billion will be on offer with a free float of 15 per cent.

TUI, Europe's biggest tour operator, is touting half of its 49.8 per cent stake, its first move to reshuffle the group it hopes to merge with the British unit of TUI Travel.

The Albert Ballin consortium, headed by members' German businessman Klaus-Michael Kuehne and the City of Hamburg, is seeking an investor to "anchor" in a 10 to 20 per cent control of its remaining 50.2 per cent share of Hapag-Lloyd.

Despite the German-based carrier skating close to bankruptcy it returned to profit in the fourth quarter at $133 million in the fourth quarter of 2010 from a revenue of $2.1 billion, a 34 per cent increase year on year.