Italian tanker shipping company d’Amico International Shipping (DIS) has unveiled that around 97.3 percent of its preferential subscription rights were exercised.
The company collected EUR 42.8 million (USD 48.3 million) of net proceeds through the transaction.
During the preferential subscription rights’ exercise period, which started on March 25, 2019 and ended on April 16, 2019, around 628.39 million preferential subscription rights were exercised, according to d’Amico.
Given the ratio of 10 new shares for 11 preferential subscription rights, the company said it would issue 571.26 million of new shares, which will trade on the Mercato Telematico Azionario.
Additionally, any remaining shares not exercised during the period are to be placed through a private placement ending on May 17, 2019.
“We are pleased with the very high participation in our rights issue, with over 97% of the preferential subscription rights subscribed. We are confident that we are finally close to a strong market recovery, driven also by the pent-up demand for our vessels deriving from IMO 2020,” Paolo d’Amico, d’Amico International Shipping’s Chief Executive Officer, said.
“The capital raised will allow us to strengthen our balance sheet, positioning us favorably to benefit from the expected increase in freight rates. From 2020, DIS’ lower investment needs and debt repayments should also contribute to a deleveraging of our balance sheet and to the generation of substantial free cash flow for our shareholders.”