Two days after signalling a likely switch from share issues to buybacks, Top Ships has been true to its word.
The Greek tanker owner said the board had authorised a spend of up to $4m on its own Nasdaq-listed stock.
Open-market or privately negotiated deals could be carried out over the next three months, the company added.
The sum represents 5.2% of the company’s market cap of about $80m.
The timing will depend on market conditions, regulatory requirements, capital allocation alternatives and other corporate considerations.
Top Ships had said earlier this week that buybacks were being considered, with the stock trading at 29% of its net asset value (NAV).
Other shareholder-friendly measures could follow.
Earlier in 2023, the shipowner pledged it would not carry out further equity offerings to raise money for expansion for the rest of the year.
The company has been a frequent user of share issues to fund growth.
The stock closed down nearly 8% at $16.69 on Wednesday.
The price was as high as $126 in 2019.
Net asset value rises
Top Ships has calculated its NAV at $344m, up from an estimate of $285m in June, which translates into $74.36 per share.
The company has 87% fleet coverage in 2024 and 76% in 2025, rising to 100% the following year.
Last week, chief executive Evangelos Pistiolis and his family demonstrated their commitment to the company by lifting their stake to 73%.
He acquired more shares in the owner of two VLCCs, three suezmaxes and three MRs in open-market deals, as well as converting all the family’s Series E preferred shares.
Top Ships issued 2.9m shares as a result, giving the family 3.4m of the 4.6m shares outstanding.
The number of shares was reduced by a 12-to-one reverse stock split in September to regain compliance with the $1 minimum trading level required by the Nasdaq.
