Scorpio Tankers Floats 30.7 Million New Shares

Taking advantage of a three-month, near-50% surge  in its stock price Wednesday, Monaco-based oil shipper Scorpio Tankers  announced that it has priced a follow-on offering to sell 30.7 million shares of its own common stock on or about February 4.

At the offer price of $7.50 per share, Scorpio stands to reap as much as $230 million in gross proceeds from the offering. Yet Scorpio -- unprofitable and carrying nearly $197 million in debt (against $38 million in cash) -- says it will be using the proceeds of its offering primarily to buy new tankers, although "working capital and other general corporate purposes" were also named as potential uses for the cash.

News of the liquidity event helped Scorpio steer clear of the sell-off on Wall Street today, as its shares climbed 1.5%, to close at $8.03 -- significantly ahead of the new shares' offering price.

The article Scorpio Tankers Floats 30.7 Million New Shares originally appeared on

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.