Star Bulk Allocates 4.4 Million Shares for €107.8 Million Equity Raise

Overview

• Star Bulk allocated 4.4 million new shares at €24.50 each, implying €107.8 million in gross proceeds from a Greek offering.
• Management says proceeds will cover roughly $65.8 million of remaining payments on three Kamsarmax newbuilds with the balance available for further newbuild or secondhand purchases.
• The company previously estimated offering and admission expenses at about €7.3 million, implying roughly €100.5 million in net proceeds if that estimate holds.
• Public-offering demand ran to about €656.3 million, more than six times the shares on offer, but the economic benefit to holders depends on timely deliveries, disciplined purchase prices and future charter rates.
• The raise increases the share count and will dilute holders who do not participate, so whether shareholders gain will hinge on the extra vessels’ earnings, cash generation and how quickly the company deploys the funds.