Wall Street analysts tell TradeWinds that they were “surprised” to see the New York-listed stock jump 4.66% to $26.06 after 4.25 million shares priced at $23.75 a piece.
The spike caught many forecasters off guard because shipping stocks typically plummet when issuers announce follow-on fundraisers due to concerns about dilution.
In an alert issued shortly after the open JP Morgan analyst Nishant Mani said he expected the purchase to be met by applause on Wall Street but also urged clients to exploit “any weakness that may result from the near-term dilutive impact of the equity offering”.
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