Nordic American Offshore prices IPO at $16

The company’s shares are expected to commence trading on 12 June on the New York Stock Exchange.

NAO said it has granted the underwriters a 30-day option to purchase up to 882,352 additional common shares to cover over-allotments.

“The net proceeds from this offering will be approximately $86,970,574. If the option granted to the underwriters to purchase additional common shares to cover over-allotments is exercised in full this would increase the net proceeds by approximately $13,270,574,” NAO announced.

“The company intends to use the net proceeds to purchase two newbuilding PSVs and for other acquisitions and general corporate purposes, including working capital. The company may use the balance of the net proceeds for the construction, in a Norwegian yard, of up to three additional PSVs that are similar to the company's PSVs, under a letter of intent into which the company has entered,” it added.

“If the options to construct the three PSVs are exercised, the company will have a fleet of 11 vessels.”

The offering is expected to close on 17 June, subject to customary conditions.

Morgan Stanley & Co, Credit Suisse Securities (USA), JP Morgan Securities and DNB Markets are acting as joint book-running managers and Global Hunter Securities is acting as a co-manager for the IPO.