Scorpio Bulkers is looking to make its shares more attractive to investors.

The Emanuele Lauro-led owner has executed a 10-for-1 reverse stock split of its common shares.

The New York-listed company's board of directors on 3 April approved the move, which includes lowering the number of authorised shares to 31.9m, at its annual general meeting.

The split, effective 7 April, will leave Scorpio Bulkers with 7.25m shares. Stakeholders will be paid out on fractional units at their 6 April closing price on the New York Stock Exchange

"The purpose for seeking shareholder approval to effect the reverse stock split was to increase the market price of the company’s common shares," the company said.

"The company believes that the increased market price for its common shares that is expected as a result of implementing the reverse stock split will improve the marketability and liquidity of the company’s common shares and will encourage interest and trading in the company’s common shares."

Scorpio Bulkers shares fell 9.2% Friday to close at $1.87.

Sister company Scorpio Tankers effected a 1-for-10 reverse stock split in January 2019.

Scorpio Bulkers' $100m fall 2018 investment in Scorpio Tankers has lost half its value under the coronavirus overhang, months after making huge paper gains following stark criticism.

Scorpio Bulkers in October 2018 scooped up one-third of a $300m equity sale by sister act Scorpio Tankers that offered 162.1m shares at $1.85 each.

Both companies' top brass, including president Robert Bugbee, found themselves defending the move before highly skeptical analysts, but it was then heralded last year for making a $114.7m non-cash gain and cash dividend income of $2.2m.

The investment has since taken a huge hit as a result of Covid-19, falling 51% in the first quarter to register an unrealised loss of $89.1m.