Ocean Tankers Plans $45M Rights Issue

Ocean Tankers Holdings, the only public company quoted in the ‘Shipping’ sector of the Cyprus Stock Exchange, is planning a $45m rights issue to part fund the acquisition of eight new oil tankers. A previous IPO raised $13.4m to float the company. Since then, the fleet has doubled from three to six tankers of 4,500 to 12,000 tonnes capacity, while two newbuildings are expected to be delivered in the second half of 2008. The new acquisition of eight recently-built ships with an average age of six years, will double the fleet to 16 vessels, with the new additions having a 15,000 to 20,000 tonnes capacity. The new ships, that will carry the Maltese flag, are committed to Lukoil for a ten-year charter. The purchase value is set at $284m, underwritten by ABN Amro. Revenue and profits too are expected to multiply, from $17.8m to about $60m and from $3.5m to $20m, respectively. [Source: http://www.financialmirror.com]