LPG has a secondary offering


Dorian LPG (LPG) announced a secondary share offering –

Only 2M shares offered @ $44.50/sh. To raise $89M before fees, really? I am just surprised by the low amount raised and its intended purpose. I mean, a modern VLGC from a quality yard now sets a company back $120M - $125M. But doesn’t deliver for at least 2.5 years. In Jan 2024, LPG announced an order for an VLGC newbuild and made a decent-sized initial payment.

IIRC, LPG mgmt has repurchased shares a lot lower, so no major problems with the decision. Just a little surprised at the size & timing. OTOH, it does provide a marker on mgmt’s perception of LPG share value.

[Glad they waited for me to start a position in 2024 :slight_smile: ]