Nasdaq-listed StealthGas is adding to its share buyback pot after big price gains this year.
The Harry Vafias-led LPG carrier company said it has increased its repurchase programme by $10m to $25m.
The Athens-listed owner added that deals will be done from time to time in the open market or through privately negotiated transactions.
StealthGas has so far spent $19m on its stock under the authorisation.
This total includes 2m shares, or about 5% of the company, from an institutional investor in an off-market deal worth $10.2m. Market sources say the seller was computer billionaire Michael Dell.
MSDC Management — an investment vehicle affiliated with the Dell Family Office (DFO) — owned about 9.1% of StealthGas’ common stock as of April this year, according to the Vafias company’s latest annual report.
StealthGas shares were down 2% on Thursday at $4.95, but have jumped 90% so far in 2023.
The market capitalisation stands at $189m.
StealthGas has a fleet of 33 LPG carriers, including six controlled through a joint venture and two 40,000-cbm newbuildings.
Earlier this week, Vafias-led spin-off Imperial Petroleum said it had repurchased 1.1m shares worth about $1.9m in the past quarter, after announcing a $10m buyback authorisation.
The buybacks will be seen as supportive to Imperial’s New York share price, although it is not clear whether they will be enough to mollify critics who have blasted past dilutive equity raises through US investment bank Maxim Group.
Niche market
Chief executive Vafias is also earmarking cash for StealthGas vessel buys.
He told analysts in August that the company is ready to move for the right LPG carriers in a niche market with few sales candidates.
“With the way the market is and with the way that LPG is such a small business with very few players, basically, we don’t have a choice,” he said.
“If we find a good quality vessel, it doesn’t really matter if it’s second [hand] and/or [a] newbuilding, and it’s valued properly, we’re going to buy it,” the CEO added.
Harry Papachristou contributed to this article
