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Scorpio seeks $300m to fund newbuilding options

Scorpio Tankers has gone to the markets for a $300m cash injection to boost its newbuilding programme. The New York-listed tanker company priced an offering of 36,144,578 shares of common stock at $8.30 per share.

The $300m fund raising exercise will net the the ever-expanding tanker outfit $289.1m after fees, with the money expected to be spent on options attached to its current orderbook of 37 vessels.

"Scorpio is engaged in discussions with counterparties on a continuous basis and intends to make opportunistic vessel acquisitions at attractive prices," the company said in an SEC filing.

After announcing a $6.6m profit last month in its first quarter earnings release, Scorpio ceo Emanuele Lauro promoted the earnings potential of his company, highlighting Scorpio's positive performance despite so much of its capital being tied up in newbuildings.

At the close of the New York Exchange 8 May 2013, Scorpio shares were trading at $8.82.

Posted 09 May 2013

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