Greek tanker owner Top Ships has enjoyed a spike in its share price after regaining compliance with Nasdaq listing requirements.
The owner of two VLCCs, three suezmaxes and three MR vessels carried out a reverse stock split at the end of September to boost its price back above the $1 minimum for the New York exchange.
Every 12 shares were converted to one share.
The company said it had received confirmation from the Nasdaq that it was back in compliance after the shares traded above this level for 10 straight days.
Top Ships closed at $9.10 on Monday, up 12.35%.
The volatile stock’s high point this year came in February when it reached $19.80.
The company, led by chief executive and major shareholder Evangelos Pistiolis, now has 1.7m shares outstanding.
Top Ships received a notice from the US exchange in April that its stock had traded below $1 for 30 consecutive days.
Shareholders approved the split at a meeting on 5 September.
Before the move, the share was $0.59, giving a market capitalisation of just $11.92m. This is now $15.43m.
Volatility warning
Top Ships had previously warned of the volatility of its shares. One day in March, it saw a 30% spike as bosses issued a positive update on its valuation.
Management said the net asset value was estimated at $286m, or $5.27 per share, at that time.
In the same month, the shipowner pledged not to carry out equity offerings to raise money for expansion this year.
It announced a “moratorium on new equity offerings” until the end of 2023, which is meant to “significantly enhance the trading stability of its common shares”.
Under this moratorium, Top Ships — a frequent user of stock offerings to raise money for growth — said it “will not conduct any new equity offerings, public or private”.
