Dorian LPG Ltd. Announces Pricing of Public Offering of 2,000,000 Common Shares

Rhea-AI Summary

Dorian LPG has announced the pricing of its public offering of 2,000,000 common shares at $44.50 per share. The total net proceeds will be allocated for general corporate purposes. Additionally, a 30-day option for underwriters allows the purchase of up to 300,000 more shares.

Jefferies and SEB are the lead bookrunning managers, with several other financial institutions participating.

The offering is facilitated through a prospectus supplement filed with the SEC. Interested parties can access these documents through the SEC's EDGAR database or by contacting Jefferies

Positive

• Offering price set at $44.50 per share, potentially attracting investor interest.
• Net proceeds are earmarked for general corporate purposes, indicating flexibility in fund allocation.
• Underwriters granted a 30-day option to purchase an additional 300,000 shares, showing confidence in market demand.

Negative

• Issuance of 2,000,000 shares could dilute existing shareholders' equity.
• Potential additional issuance of 300,000 shares may further dilute share value.
• The company did not specify how the proceeds will be used, creating uncertainty about the impact on future growth.

Insights

Financial Analyst

The announcement by Dorian LPG Ltd. of a public offering of 2,000,000 common shares at $44.50 per share is a significant event that impacts the company's financial structure and investor base. The Offering is a method for the company to raise approximately $89 million in gross proceeds, which are earmarked for general corporate purposes. This could include debt reduction, capital expenditures, or working capital. The company's decision to undertake this Offering suggests a need for liquidity, which could be viewed as a short-term positive for operational flexibility.

However, issuing new shares dilutes the existing shareholders' equity, which could potentially depress the stock price in the short term. The inclusion of a 30-day option for underwriters to purchase an additional 300,000 shares further accentuates this dilution risk. Additionally, the underwriters' involvement, including high-profile names like Jefferies and BNP Paribas, signals a strong institutional interest, which might partially offset dilution concerns by adding credibility and perceived stability.

Investors should closely monitor how the proceeds are utilized. Effective use of the proceeds can lead to long-term growth and shareholder value creation, while misuse could strain the company's financial health. Historically, markets react variably to such offerings, often influenced by the specific financial health of the issuing company and broader market conditions.

Short-term implications: Possible stock price volatility due to dilution. Long-term implications: Depends on the effective utilization of the raised funds.

STAMFORD, Conn.--(BUSINESS WIRE)-- Dorian LPG Ltd. (NYSE: LPG) (the “Company”, “Dorian LPG”, “we”, “us” and “our”) announced today that it has priced its previously announced underwritten public offering (the “Offering”) of 2,000,000 shares of common stock, par value $0.01 per share (“Common Shares”), at $44.50 per share.

The net proceeds of the Offering are expected to be used for general corporate purposes.

The Company has granted the underwriters a 30-day option to purchase up to an additional 300,000 Common Shares.

Jefferies is acting as lead bookrunning manager for the Offering, and SEB is acting as joint lead bookrunning manager. Pareto Securities, Fearnley Securities, Arctic Securities, DNB Markets, BNP PARIBAS and Credit Agricole are also acting as joint bookrunning managers for the Offering.

The Offering is being made only by means of a prospectus supplement and accompanying base prospectus. A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (the “SEC”) and is effective. A final prospectus supplement related to the Offering will be filed with the SEC . You may obtain these documents for free, once available, by visiting EDGAR on the SEC website at sec.gov. Alternatively, a copy may be obtained from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at 877-821-7388, or by email at prospectus_department@jefferies.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Dorian LPG Ltd.

Dorian LPG is a leading owner and operator of modern Very Large Gas Carriers (“VLGCs”) that transport liquefied petroleum gas globally. Our fleet currently consists of twenty-five modern VLGCs, including twenty ECO VLGCs and four dual-fuel ECO VLGCs. Dorian LPG has offices in Stamford, Connecticut, USA; Copenhagen, Denmark; and Athens, Greece.

Forward-Looking Statements

Matters discussed in this press release may constitute “forward-looking statements” The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “projects,” “forecasts,” “may,” “will,” “should” and similar expressions are forward-looking statements. These statements are not historical facts but instead represent only the Company’s current expectations and observations regarding future results, many of which, by their nature are inherently uncertain and outside of the Company’s control. Where the Company expresses an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, the Company’s forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by those forward-looking statements. The Company’s actual results may differ, possibly materially, from those anticipated in these forward-looking statements as a result of certain factors, including changes in the Company’s financial resources and operational capabilities and as a result of certain other factors listed from time to time in the Company’s filings with the SEC. For more information about risks and uncertainties associated with Dorian LPG’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Dorian LPG’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The Company does not assume any obligation to update the information contained in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240606163734/en/

Ted Young

Chief Financial Officer

+1 (203) 674-9900

IR@dorianlpg.com

Source: Dorian LPG Ltd.

FAQ

What is the price per share for Dorian LPG's public offering?

The price per share is set at $44.50.

How many shares is Dorian LPG offering?

Dorian LPG is offering 2,000,000 shares, with an option for underwriters to purchase an additional 300,000 shares.

What is the stock symbol for Dorian LPG?

The stock symbol for Dorian LPG is LPG.

When was the public offering announced by Dorian LPG?

The public offering was announced on [Insert Date of PR].

Who are the lead bookrunning managers for Dorian LPG's offering?

Jefferies and SEB are the lead bookrunning managers for the offering.