Boston, MA, 07/03/2013 (nysepost) - Frontline Ltd. (NYSE:FRO) entered into an equity distribution agreement in early June 2013 with Morgan Stanley & Co LLC through which the company is allowed to offer and sell new ordinary shares of its stock in a series of offerings. The agreement stipulates that the net proceeds of the stock offer are to be valued at $40 million and that the offer shall be made through Morgan Stanley LLC. Frontline Ltd. (NYSE:FRO) plans to utilize the capital received from the stock offering to cover its expenses and to supplement the existing working capital requirements.
Shares of Frontline Ltd. (NYSE:FRO) closed at $1.96 on Tuesday, recording a gain of 8.89 percent. The share price ranged between $1.83 and $1.98 during the day, with a 52-week high of $4.72 and a 52-week low of $1.71 per share.
Frontline Ltd. (NYSE:FRO) recorded very high trading volume of 1.44 million shares on Tuesday, whereas the average volume is 1.21 million shares per day. Frontline Ltd. (NYSE:FRO) currently has 77.86 million shares outstanding in the market, with a market cap of $152.60 million, along with an institutional ownership of a negligible percent of the total share capital.
Frontline Ltd. (NYSE:FRO) is a shipping company, primarily engaged in ownership and operation of oil tankers and oil/bulk/ore (OBO) carriers. The tankers are of two sizes, very large crude carriers (VLCCs) between 2 and 3.2 lakh deadweight tons and suezmax tankers between 1.20 and 1.70 lakh deadweight tons. The fleet of Frontline Ltd. (NYSE:FRO) consists of 44 VLCCs, 21 Suezmax tankers which are either chartered or owned, and 8 Suezmax OBOs which are chartered.