Seanergy Maritime Holdings is looking to print new shares with fresh cash likely to cut debt and fund the purchase of secondhand capesize bulkers.
Nasdaq-listed Seanergy has hired Fearnley Securities to handle the sale of stock worth $5.7m.
While firm proceeds were not outlined in a filed with US regulators, Seanergy says both the repayment of loans and the purchase of vessels is likely. It has yet to price the offering.
Seanergy has been building its fleet during a cyclical downturn in dry bulk.
It has invested $275m in secondhand ships since March 2015, with nine capesizes and two supramaxes on its shopping list.
It has since sold out of the supramax space to become a pure-play on the capesize sector.
“We currently view the capesize vessel class as providing the most attractive returns in the dry bulk space given existing vessel price levels,” its filing said.
The majority of its fleet are trading spot. However, as rates revert to longer-term averages the company says it will lock in a greater portion of its ships on period contracts.
Stamatis Tsantanis, chief executive of Seanergy, is bullish on the market.
He told a Capital Link conference in London this September: “I think the market currently has the best fundamentals for the last 15 to 17 years, especially as far as the supply of ships is concerned."
