Scorpio Bulker stock tumbles after public offering pricing

On Tuesday the company's shares closed at $2.18, opening today at $1.53 after a significant drop in after hours trading on Tuesday evening and throughout Wednesday. The price opened this morning at $1.53 as the company with a $290m market cap offered up $200m in shares and a further $30m over-allotment option.

The company announced yesterday that it was planning to sell 133m shares at $1.50 each, with Scorpio Services Holdings snapping up 10m shares for $15m.

Funds from the offering are earmarked for payment of newbuilding contracts, as the company continues to sell of its orderbook owing to a low dry bulk freight market.