Norway’s DOF Group has scrapped a secondary share offering after trading volumes soared.
The offshore support vessel owner completed a $100m private placement to help fund its $1.1bn takeover of Maersk Supply Service in the summer.
It then announced a subsequent offering of up to 2m shares at the same price of NOK 99, for a total of NOK 198m ($18.6m).
But DOF said the stock has since been trading at or below this level at significant volumes.
A total of 31.8m shares have changed hands in that time, more than 15 times the size of the planned offering.
The average price has been NOK 92 and the stock closed at NOK 93.50 on Monday in Oslo.
“Existing shareholders wishing to neutralise the dilutive effect of the private placement have thus had the opportunity to purchase shares in the market at prices below the price which would have been the subscription price in the subsequent offering,” DOF said.
Directors also believe the cash raised from any follow-up sale is not needed to fund the Maersk Supply Service deal, or for general corporate use.
A subsequent offering directed towards Maersk Supply Service Holding will also be cancelled.
Shipping magnate John Fredriksen was a big buyer in the first offering.
The tycoon’s private Geveran Trading subscribed for $30m of the $100m.
Fredriksen’s holding now comprises 15.28m shares, or 8.27%.
When the Maersk Supply deal closes in the fourth quarter, its owner, AP Moller Holding, will be the biggest DOF shareholder on 25%, however.
DOF carried out a $53m IPO in June last year after emerging from bankruptcy.
