Excel Maritime priced its latest offering of 5,899,000 shares at $21.00 per share last week, raising gross proceeds of $123.9 million. After accounting for compensation of sales agents Cantor Fitzgerald and Hibernia Southcoast Capital of $7.1 million, net proceeds to Excel were $116.8 million. Combined with the company’s December share offering that raised $51.8 million, Excel has now realized $178.9 million of the $200 million the company’s November 2004 shelf registration authorized. The proceeds are earmarked for the acquisition of more dry bulk vessels, which the company had begun to do even before the shares had priced. To a lesser extent proceeds may be used for general corporate purposes.

The company has succeeded in raising an incredible amount of money for expansion and vastly increasing it’s market capitalization. However, while the shipping markets, and correspondingly shipping stocks, are still holding strong, the result of all this fundraising is a real dip in share price for Excel, as can be seen from the share price graph.

Investors in the US are hungry for dry bulk shares and Excel Maritime is serving up another round, just as Diana Shipping moves its roadshow from London to America. Having raised $52 million through a share sale to institutional investors in late 2004, sold at a steep discount to the then-current trading price, Excel Maritime is bravely heading back to the equity markets for another round. Investors took the stock down sharply when the company announced its intention to issue another 5,899,000 shares through sales agents Cantor Fitzgerald & Co. and Hibernia Southcoast Capital. The company hopes to raise up to $32.1 million with this offering.

The proceeds are primarily to be used to pay for identified vessels, for which Memoranda of Agreement have already been signed. Proceeds may also be made available for the purchase of additional vessels or, to a lesser extent, general corporate purposes. Excel further reiterated its desire to continue its fleet expansion when on Wednesday the company agreed to acquire the MV IDC 2, to be renamed the MV Attractive, for a price of $15.5 million. The handymax bulk carrier was built in 1985, which contrasts with the company’s stated objective of reducing the age of its fleet, by Mitsubishi Engineering & Shipbuilding Co. and has a capacity of 41,500 dwt.

Then on Thursday Excel announced that the company had agreed to acquire the handymax bulk carrier MV Fiona Bulker, to be renamed the MV Princess I, for a price of $25.6 million. The 38,800 dwt vessel was built in 1994 by Ishikawajima-Harima Heavy Industries.