Diana Shipping shareholders may not get exactly what they planned in a buyback that has been oversubscribed nearly fivefold, but they will at least get something.
The New York-listed owner plans to repurchase only some of the 12.2m shares that investors tendered in a programme offering to buy only 2.74m units at $3.65 each.
The so-called prorated offer, which expired Wednesday, will provide Simeon Palios-led Diana Shipping with an intended $10m in cash.
The Greek bulker owner will announce the number of shares it will repurchase following a confirmation process.
Diana Shipping plans to keep taking back shares and selling older tonnage as long as the shares keep trading under net asset value (NAV), chief strategy officer Ioannis Zafirakis said during last week's third-quarter earnings call.
He said the company may then reintroduce a shareholder dividend once the stock is fairly valued.
The company's shares have fallen 1.8% to $3.21 in early-morning trading on the New York Stock Exchange.
Jefferies analyst Randy Giveans last week put the company's NAV at $4.27 per share.
Fellow New York-listed bulker owners Genco Shipping & Trading and Star Bulk Carriers both recently reinstated dividends after several-year hiatuses.
Diana Shipping has sold seven ships over the past year, leaving it with 42 dry bulk ships.
