Dorian LPG has seen its share price tumble after announcing a big sale of new stock on Wednesday.
The New York-listed VLGC owner said it would sell 2m shares to raise cash for general corporate purposes.
The stock closed on Wednesday at $50.30, making the deal worth $115m if the underwriters’ extra allotment of 300,000 shares was taken into account.
In after-hours trading, however, Dorian LPG slipped to $46 and then went as low as $44.01.
The share closed down nearly 11% on Thursday at $44.96.
Dorian LPG had said on Thursday it would price the share offer at $44.50.
This means the owner would now raise $102m.
The market capitalisation has fallen from a little over $2bn to $1.83bn.
The total number of shares equals nearly 6% of the outstanding amount currently.
The company has not yet commented on why it chose to carry out the issue when it has so much cash in the bank.
$282.5m on hand
Cash and cash equivalents stood at $282.5m at 31 March, up from $148.8m the year before.
Jefferies is acting as lead bookrunning manager for the offering, with SEB a joint bookrunner.
Fearnley Securities said it is also acting as a co-manager.
In May, Dorian LPG hailed its best-ever annual result on the back of stronger VLGC rates.
Net profit in its fiscal fourth quarter ending 31 March was $79.2m, up from $76m, leaving full-year earnings at a record $307m.
Fourth-quarter revenue rose to $141.4m from $133.6m in 2023.
The company declared an irregular dividend totalling $40.6m.
Chief executive John Hadjipateras said more than $700m has now been handed back to shareholders since the 2014 IPO.
