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Frontline's VLCC Front Duke.
Three million shares were placed at a price of NKr357 each, raising gross proceeds of NKr1.07bn.
The share offer was well received as the over-allotment option of 700,000 shares, above the initial tranche of 2.3m shares, was exercised.
Sentiment would have been helped by the fact that Mr Fredriksen’s Hemen Holding was prepared to underwrite – at no cost - the subscription of the initial 2.3m shares.
In the event, Hemen was allocated 225,000 shares and now controls a total of 26.3m shares, representing 33.8% of the issued share capital.
Frontline said the net proceeds would be used to finance the acquisition of the five suezmaxes bought from Top Ships tankers for $240m and in settlement of the delivery of shares in OSG currently controlled through forward contracts.
In May, Frontline disclosed a forward contract with DnB under which the tanker company would purchase 1.36m shares – 4.4% - on Aug 29 for $93.13m.
The latest share issue was lead managed by Carnegie ASA, with Fearnley Fonds ASA, DnB NOR Markets and Dahlman Rose & Co LLC as co-lead managers.
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