Scorpio sets IPO sights high

Italy’s Lolli-Ghetti family is looking to rake in an extra $80m from Scorpio Tankers’ IPO after firming up details of the issue today.

Scorpio wants to snap up $230m from the sale of 14.375 million shares, according to a revised filing with the US Securities and Exchange Commission (SEC).

Cash from the offering will be used to pay back an existing loan and buy new tankers.

Emanuele Lauro.

Its new target is a sharp rise from the $150m originally set by the shipowner when it went public with its planned float last month.

Scorpio expects to bag proceeds of $172.9m from the offer, based on an assumed offer price of $15 per share, it says.

If its stock is priced at the top end of the $14 to $16 per share range the IPO will drag in $200m from the sale of an initial 12.5 million shares.

If the underwriters take up all options they will add an extra $30m to the pot.

Scorpio, which will go public with a fleet of three tankers, says it also has a $150m loan in the pipeline from Nordea Bank, DnB NOR Bank and Fortis Bank Nederland which will boost its fire power still further.

“We intend to use the funds to purchase additional modern tankers ranging in size from approximately 35,000-dwt to approximately 200,000-dwt and generally not older that five-years-old,” it said.

It adds newbuildings, resales and second-hand tonnage are on its radar.

Scorpio will use $38.9m from the offer to repay a loan with The Royal Bank of Scotland, which will take its cash position down to around $134.0m, the filing explains.

Emanuele Lauro, a member of the Lolli-Ghetti family, will lead the company from the CEO's seat. Robert Bugbee, a senior manager at Scorpio Group and former president and chief operating officer of OMI Corp, will be its president.

As TradeWinds has previously reported, the new company has purchased the 72,600-dwt Noemi (built 2004), the 72,500-dwt Senatore (built 2004) and the 81,400-dwt Venice (built 2001) from Lauro and other Lolli-Ghetti family interests in exchange for Scorpio Tankers shares.

Parent company Scorpio Group is expected to own a 30.9% stake after the float.

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