Gener8 raised $210m from its float, which saw shares printed at $14 each – down from the $17 to $19 per share range it was initially targeting.
The stock hit a low of $12.75 in morning trading today, and was still down over 8% at $12.86 a piece at the time of writing.
In the first few hours 3.75 million shares have traded on a day when the Dow Jones showed a modest climb.
Erik Nikolai Stavseth today suggested the offer price of $14 per share, first reported by TradeWinds last night, was an “attractive entry point”.
“The problem we see is a lack of conviction from investors to buy into the crude tanker story for the longer term as the crude tanker market inevitably will run into challenges as we move towards the end of 2016 given higher supply growth,” he said in a report this morning.
The flotation brings chief executive Peter Georgiopoulos the fifth public company of his career, following General Maritime, Genco Shipping & Trading, Baltic Trading and Aegean Marine Petroleum.
But the result is likely to be a warning signal to other tanker owners that despite a hot crude market right now, investors are still demanding a discount to net asset value (NAV) for companies wanting to come public.
