I have been looking at DRy Bulk Shipping. What does an over allotment option mean? How will it affect the future price of the stock.
NEW YORK, Nov. 17 /PRNewswire-FirstCall/ -- Eagle Bulk Shipping Inc. (Nasdaq: EGLE - News) today announced that the underwriters of its follow-on offering of 5,500,000 common shares completed on November 2, 2005 exercised in full the over-allotment option granted to the underwriters by the Company and the Company's principal stockholder, Eagle Ventures LLC. As a result of the over-allotment exercise, the Company will sell 500,000 shares of its common stock and Eagle Ventures LLC will sell 325,000 shares of the Company's common stock at $14.50 per share. The Company will not receive any of the proceeds from the sale of shares by Eagle Ventures LLC. The Company's follow-on offering was managed by UBS Investment Bank LLC and Bear, Stearns & Co., Inc. acting as joint bookrunning managers.
About Eagle Bulk Shipping Inc.
Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New York City that owns and operates Handymax dry bulk vessels, which are dry bulk vessels that range in size from 35,000 to 60,000 deadweight tons, or dwt, and that transports major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. The Company currently owns and operates 12 Handymax dry bulk vessels and has agreed to purchase one additional Handymax dry bulk vessel.