Scorpio Tankers Floats 30.7 Million New Shares

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Click Here Now

Taking advantage of a three-month, near-50% surge in its stock price Wednesday, Monaco-based oil shipper Scorpio Tankers (NYSE: STNG ) announced that it has priced a follow-on offering to sell 30.7 million shares of its own common stock on or about February 4.

At the offer price of $7.50 per share, Scorpio stands to reap as much as $230 million in gross proceeds from the offering. Yet Scorpio -- unprofitable and carrying nearly $197 million in debt (against $38 million in cash) -- says it will be using the proceeds of its offering primarily to buy new tankers, although "working capital and other general corporate purposes" were also named as potential uses for the cash.

News of the liquidity event helped Scorpio steer clear of the sell-off on Wall Street today, as its shares climbed 1.5%, to close at $8.03 -- significantly ahead of the new shares' offering price.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.