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Offshore wind turbine installation shipping company Eneti (NYSE:NETI) has priced shares in its secondary public offering meant to help fund its newbuild pipeline.
The underwritten public offering was first announced earlier this week. Eneti reported Friday it will be offering 19,444,444 shares of common stock, with a par value $0.01 per share, at $9.00 per share. The company has also granted the underwriters a 30-day option to purchase up to an additional 2,916,667 commons shares.
The company says the offering will result in gross proceeds of approximately $175 million, or approximately $201.2 million if the underwriters’ option to purchase additional Common Shares is exercised in full. This is prior to deducting underwriting discounts, commissions and other offering expenses.
Scorpio Holdings Limited, a related party and major shareholder, has agreed to purchase 3,666,666 shares at the public offering price. In addition, Robert Bugbee, Eneti’s President and Co-Founder, has also agreed to purchase 222,222 shares, while an unidentified non-executive director has will purchase another 11,111 shares, both at the public offering price.
The share pricing was a discount compared to Thursday’s close at $10.20, however, shares of the company fell on Friday by a little over 12% to close at $8.97.
The public offering is expected to close on November 15, 2021.
Led by Chairman and CEO Emanuele Lauro, in 2020 Eneti shifted from owning and operating dry bulk carriers under the brand name “Scorpio Bulkers” to embark on a new and more “sustainable” future in the offshore wind sector. Since then, it has changed its name and sold off its fleet of dry bulk ships while pursuing new and used fleet of highly-capable “next generation” WTIVs that will be needed to develop offshore wind projects in the United States and globally.
Net proceeds from the offering are expected to be used for general corporate purposes, including the funding of the companies wind turbine installation vessel newbuilding program consisting of one contracted WTIV, one optional vessel and one proposed Jones Act compliant vessel.
Eneti entered into an agreement earlier this year to construct its first WTIV with South Korean shipbuilder DSME, at a price tag of $330 million, including an option for one additional vessel. Delivery is planned in early Q3 2024. At the same time, it revealed it was in advanced discussions with American shipbuilders for the construction of a Jones Act compliant WTIV, which is not yet confirmed.
In August, Eneti acquired UK-based Seajacks and its fleet of five purpose-built WTIVs, positioning the company as one the top owners and operators of wind turbine installation vessels worldwide. The acquisition resulted in existing Eneti shareholders owning 58% the company and owners of Seajacks owning 42%.
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