Danaos Corp has set the pricing of its multimillion-dollar equity offer, in which it aims to raise cash to add more vessels to its existing fleet of 60 containerships.
The Greek boxship owner said Monday that it is offering $55m in common stock, after major stakeholders showed interest in buying about $25m at the public offering price.
The company’s shares fell 26% to close at $5.69 Friday as a result of the offer, most likely because it is such a large bid to investors, analysts said.
The company has 15.4 million shares outstanding. Danaos said Friday it has priced this offer of 9 million common shares at $6.00 each in an effort to raise $54m in cash for "vessel acquisitions" and other business costs.
The New York-listed owner said certain "significant stockholders and management insiders" have agreed to buy about $27m of the stock at the public offering price.
The company's chief executive Dr John Coustas has committed to buying a tranche of shares worth $17m through his company Danaos Investment Limited, the shipowner's largest stockholder.
Danaos has also offered the underwriters a 30-day option to snatch up to 1.35 million common shares.
Citigroup and Jefferies are acting as joint book-running managers of the offering, which will be made pursuant to filing a shelf registration statement with the SEC.
The offering is expected to close on or about 26 November.
