Diana Shipping has closed a second tender offer for its shares, which was oversubscribed by 30%, despite the offering being repriced.
The New York-listed company launched the tender offer on 14 June to take back 2 million shares or 2% of its outstanding common stock.
A total of 2.62 million shares were tendered in the offer for $3.75 each, including 14,359 shares tendered following to the offering's guaranteed delivery procedure.
The company expects the total purchase price to be around $7.5m, according to a filing on Friday.
Because the tender offer was oversubscribed, Diana said the number of shares it will purchase from each tendering shareholder will be prorated.
Diana will buy a certain percentage of each shareholder's offered shares to stay within the 2 million-share limit, allowing each tendering shareholder to sell back at least some of their offered shares.
Don't call it a buyback
Diana Shipping's rising stock price prompted the shipowner to adjust the pricing of its tender for its shares and extend the offer by nine days in mid-July.
The pricing was increased by 15% from $3.25 to $3.75 per share.
"Share buyback programmes do not give you the opportunity to invest truly in your own company," Ioannis Zafirakis, Diana's director, chief strategy officer and secretary, told TradeWinds on 11 July.
"The only thing they give you is an attempt in the short term to raise your stock price, compared to the tender offer that allows you to really invest," he said.
Earlier this year, Diana completed another tender offer to acquire 3.1 million of its shares, which was also oversubscribed.
Diana's shares were $3.61 each as of 11:25am in New York today, which is around 10% higher than the level seen 30 days ago.
