SeaCube shares draw less than expected
SeaCube Container Leasing raised $95 million in an initial public offering of stock last week, selling 9.5 million shares priced at $10 per share.
The share price was a significantly below the initially proposed price of $16 to $18 per share that the container leasing company had outlined earlier in the month in an U.S. Securities and Exchange Commission filing.
The investment company that owned SeaCube, Seacastle, sold 7 million rather than 5 million shares of its stock in the company. Consequently, Seacastle’s stake in SeaCube after the offering is 47.2 percent of SeaCube’s outstanding common shares, or 42.6 percent if the underwriters’ overallotment option is fully exercised instead of the 57.8 percent to 52.8 percent it initially expected.
Still, SeaCastle said it would “own shares sufficient for the election of our directors and the majority vote over fundamental and significant corporate matters and transactions,” according to the company’s prospectus with the SEC.
SeaCastle is also in the chassis leasing business through its ownership of TRAC Intermodal, and containership chartering through its ownership of a fleet of 13 ships, most of which are on charter to APL and MOL.
SeaCube said it would have proceeds of $18.6 million, after deducting the underwriting discounts and commissions and estimated offering expenses, and that net proceeds would increase by about $8.8 million if the underwriters’ overallotment option is exercised in full.
It said it would use the net proceeds to invest in new containers, working capital, and other general corporate purposes, as well as potential strategic investments and acquisitions.
SeaCube said it has not identified, or entered into negotiations regarding, any specific strategic investments or acquisitions, but planned to pursue strategic acquisitions of container fleets and container leasing companies.
SeaCube’s stock trades under the ticker symbol BOX on the New York Stock Exchange. Share rose on Friday, closing at $11.65 after trading from $11 to $12.25 during the day. ' Chris Dupin