Torm (NASDAQ:TRMD) shares fell 6.3% in premarket trading on Tuesday after OCM Njord Holdings S.à r.l. launched a secondary public offering of 9 million Class A common shares.
OCM Njord Holdings is indirectly controlled by funds managed by Oaktree Capital Management and ultimately by Brookfield Corporation.
Torm is not selling shares in the offering and will not receive any of the proceeds. The transaction involves the sale of existing shares held by OCM Njord Holdings and therefore does not result in the issuance of new Torm shares.
Offering Could Include Additional 1.35 Million Shares
The selling shareholder held approximately 20% of Torm’s Class A common shares before the transaction, according to the supplied information.
J.P. Morgan Securities LLC, the offering’s underwriter, has also been granted a 30-day option to purchase up to an additional 1.35 million shares from the selling shareholder.
If the option is exercised in full, as many as 10.35 million existing Torm shares could be sold through the offering.
While the transaction does not dilute existing shareholders through the issuance of new shares, the placement increases the number of previously held shares potentially available to public-market investors.
Shares Had Been Trading Near 52-Week High
The secondary offering was announced after Torm shares had been trading near their 52-week high.
The company’s premarket decline also came as broader US equity markets traded modestly lower, with the S&P 500, Dow Jones and Nasdaq all in negative territory.
Torm operates a fleet of product tankers transporting refined petroleum products. No separate company-specific operational development was identified in the supplied information alongside the secondary offering announcement.
Torm stock price
