Star Bulk Carriers Corp has been on a capesize-buying spree since April with its eye more on the investor than the market.
Chief executive Hamish Norton says the Athens-based company has acquired 34 capesizes, including latest plans for six more, mostly through stock in an effort to bolster shareholder value.
"The motivation has been to increase market value, trading value and public float while not really changing the financial leverage or the operating leverage of the company," he told TradeWinds.
After Wednesday's market close, the company announced plans to buy two capesizes and a handymax from ER Capital Holding in a cash-share deal worth $59.4m.
It also plans to acquire four more capesizes in a put-call option scenario between $105.4m and $115.4m.
Star Bulk's market capitalisation stands at $1.18bn spread over 64.2 million shares.
Its stock slipped 1.5% to close at $12.89 Thursday.
Norton said Star Bulk has gone heavy on capesizes to increase rather than decrease average vessel size in a sector with limited asset classes.
He said a supramax owner approached his company with a sale offer but it was turned down.
"In a rising drybulk market, we wanted to do transactions that didn't make the average-size ship in Star Bulk's fleet smaller," he said.
Norton noted that the capesize infusion, if fully realised, will make average size of Star Bulk's 111 only ships slightly larger, emphasising the top goal is grow value for institutional investors.
The value of the company's fleet and other fixed assets stood at $1.9bn at 30 June, up from $1.78bn a year earlier.
"We want to make it easier for them to invest in drybulk," he said.
"We don't want them to go away."
The average size of Star Bulk's fleet, which ranges from Newcastlemax to supramax, is 114,144 dwt.
If Star Bulk buys all of ER Capital Holding's seven ships, the average size will grow to just under 117,000 dwt.
Norton said his company is not actively looking to buy more ships but it would look at a share deal that would enhance market value, trading value and public float.
"If we discovered an opportunity to do that, we'd be inclined to do it," he said.
