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Scorpio Tankers in share sale to fund LPG newbuilds

Scorpio Tankers in share sale to fund LPG newbuilds
Rapidly expanding owner Scorpio Tankers has announced another stock offering to fund its product tanker and LPG carrier acquisitions.

New York-listed Scorpio is to sell 200m shares with UBS Securities acting as sole bookrunner. Based on a current trading price of $10.23 for Scorpio’s shares the offering could raise in the region of $200m.

“The net proceeds of this offering are expected to be used for product tanker vessel and LPG carrier acquisitions, working capital and other general corporate purposes,” the company said.

In early July Scorpio announced it would was ordering a minimum of five and up to 10 VLGCs for $74m a piece at Hyundai Samho Heavy Industries and Daewoo Shipbuilding and Marine Engineering, making its debut in the LPG carrier market.

The offering will be Scorpio’s fourth share issue this year. The company has 54 newbuildings on order with three vessels due for delivery this year, 38 in 2014 and 13 in 2015.