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Tuesday, December 5, 2023

Grindrod Shipping Holdings Ltd (GRIN) Stock Trends Lower Following Pricing of Underwritten Public Offering

Grindrod Shipping Holdings Ltd (GRIN) stock prices were down by 4.85% as of the market closing on September 22nd, 2021. This brought the price per share down to USD$15.70 at the end of the trading day. Subsequent premarket fluctuations saw the stock dip by 4.46%, bringing it down to USD$15.00.

GRIN Stock Prices Offering

September 22nd, 2021 saw GRIN stock announce the pricing of its previously announced underwritten public secondary offering. The offering will see the sale of 1,841,962 ordinary shares by certain existing shareholders of the company. Each share will have a public offering price of USD$13.50 per share, for a total aggregate purchase price of the transaction at USD$24,866,487. The closing of the offering is anticipated for September 27th, 2021, contingent on customary closing conditions.

Collaboration with IVS Bulk

GRIN stock announced closing a USD$23 million upsizing of one of its existing IVS Bulk credit facilities. This move will be used to replace the working capital required to fund the transaction. The new debt is on the same terms as the existing facility. The news came on September 15th, 2021, in conjunction with the previously announced acquisition of the remaining stake in its IVS Bulk joint venture. The equity stake amounted to 31.14%, and was announce concurrently with the redemption of the IVS Bulk preference shares on September 1st, 2021.

GRIN Stock’s IVS Phoenix

September 16th, 2021 saw GRIN stock close the acquisition and concurrent financing of the 2019 ultramax bulk carrier IVS Phoenix, which was built in Japan. The vessel was already a part of the Grindrod Shipping Core Fleet. It had originally been chartered-in for a minimum period of three years from delivery. The agreement came with two one-year extensions and no option to purchase the vessel. The closing of the transaction will see the company acquire the vessel for USD$23.5 million. This is believed to reflect a significantly reduced price relative to the company’s estimate of the fair market value of the vessel. This is due to the early termination of the prevailing charter agreement. The company has also concurrently entered into a financing arrangement with a Japanese third party. This agreement came out to a total consideration of USD$25 million.

Future Outlook for GRIN Stock

GRIN stock reported a promising first half quarter of 2021 that will set the stage for a stellar second half. The company is keen to consolidate the resources and partnerships at its disposal to usher in unprecedented growth. Current and potential investors are hopeful that the company will be able to effectively leverage the resources at their disposal. This is hoped to facilitate organic and consistent growth in shareholder value over the long term.

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