Scorpio Tankers increases size of expected IPO
Shipper Scorpio Tankers Inc. on Thursday increased how much it hopes to raise from its expected initial public offering to about $187.5 million from $150 million.
The company, which is based in the Marshall Islands, said in a regulatory filing that it expects to sell 12.5 million shares for $14 to $16 each.
If shares price at the high end of that range and the underwriters, led by Morgan Stanley and Dahlman Rose, bought additional shares to cover over-allotments, Scorpio could raise as much as $230 million.
Scorpio Tankers ships crude oil and other petroleum products. It was formed in 2009 by Simon Financial Ltd. Simon is owned by the Lolli-Ghetti family, which has been involved in the shipping sector since the 1950s.
The company plans to use proceeds from the IPO, which it estimates at about $172.9 million, to buy tankers. It currently owns three tanker vessels.
Scorpio boosted its offering following the IPOs of two shippers last week, Crude Carriers Corp. and Baltic Trading Ltd., which both priced within expectations. That's happened in only 37 percent of the 19 IPOs this year, according to data from IPO research firm Renaissance Capital.
Many companies have raised less money from the capital markets than they had wished for as skittish investors demanded discounts on IPOs. The improvements last week and the highly successful debut of portfolio manager and advisory firm Financial Engines Inc. on Tuesday may signal an upturn.
Scorpio plans to list on the New York Stock Exchange under the symbol "STNG."
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