Nordic prices IPO

Nordic American Offshore (NAO) looks set to raise gross proceeds of around $108m after pricing its initial public offering (IPO).

The pure-play PSV operator has priced the shares at $16 each which is at the bottom of its indicated range.

The company is selling 5.8m shares and has also granted the underwriters a 30-day option to purchase up to 882,352 additional shares.

NAO said the net proceeds from the offering will be about $87m, which will increase by a further $13.2m if the underwriter options are exercised.

Shares in the Nordic American Tankers (NAT) spin-off are due to start trading on 12 June on the New York Stock Exchange under the symbol NAO.

The company intends to use the net proceeds to purchase two newbuilding PSVs and for other acquisitions and general corporate purposes, including working capital.

It will use the balance of the net proceeds for the construction at Norway shipbuilder Vard of up to three additional PSVs.

Underwriters for the offering are Morgan Stanley, Credit Suisse Securities, JP Morgan Securities and DNB Markets.

Shares in NAO have been trading on the Oslo over-the-counter (OTC) market since November 2013.

NAO currently owns a fleet of eight sister vessel PSVs with six on the water and two more to be delivered in January 2015.

The six 4,200-dwt sisters are the Blue Protector, Blue Guardian, Blue Thunder and Blue Power (all built 2013), as well as the Blue Prosper and Blue Fighter (both built 2012).

NAT made the surprise move into the PSV market last year, taking on a series of speculatively built vessels from Ulstein at a bargain price.

It holds 26% of the Oslo OTC traded company. Omega Advisors, BHR Capital and Tufton Oceanic are among its other investors.

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