Greek tanker owner Top Ships has seen a big spike in its share price in the US as bosses issued a positive update on its valuation.
Management at the Nasdaq-listed company said its net asset value (NAV) is estimated at $286m, or $5.27 per share.
This sent the stock soaring 30% in New York on Wednesday to $1.05.
The NAV figure is based on charter-free vessel values, debt and cash at 31 December, adjusted for the equity offering that priced on 14 February this year.
The $5.27 figure is calculated on a fully diluted basis, assuming the conversion into equity of all outstanding warrants and preferred shares.
Top Ships said last week that it would not carry out further share offerings in 2023 in order to raise money for expansion.
The “moratorium” is intended to “significantly enhance the trading stability of its common shares”, it added.
Evangelos Pistiolis-led Top Ships is the owner of two VLCCs, five suezmaxes and three MR tankers — all built after 2019 and all but one on long-term charters with major commodity traders.
To finance part of its newbuilding expansion, it was one of several Greek-controlled shipping companies that successfully raised money through share issues arranged by investment bank Maxim Group.
Criticism from shareholders
However, such deals have attracted criticism from some shareholders who consider them dilutive.
In December, the owner warned investors that the price and trading volume of its common shares were extremely volatile at times, even within a single trading day.
It produced record net income of $18.9m in 2022 — more than twice as much as the $8.6m profit it eked out in 2021, when it had reversed a $22.8m loss from 2020.
