LONDON - Navigator Holdings Ltd. (NYSE: NYSE:NVGS), known as Navigator Gas, disclosed the upsizing and pricing of a public offering of 7 million shares at $15.00 each by BW Group Limited, the selling shareholder. The secondary offering is set to close around June 13, 2024, subject to standard closing conditions. Navigator Gas will not offer any shares or receive proceeds from this offering.
Concurrently, Navigator Gas plans to repurchase half of the offered shares, totaling 3.5 million shares, at $14.52 per share directly from the underwriters, using cash on hand. This repurchase price matches what the underwriters are paying BW Group Limited, and no discount or commission will be provided to the underwriters for this transaction. The repurchase is contingent upon the secondary offering's completion and other customary conditions.
Citigroup and DNB Markets, Inc. serve as joint book-running managers for the offering. The shares are being offered via a shelf registration statement filed on June 28, 2023, and declared effective on July 11, 2023. Prospective investors are advised to read the company's filings with the SEC for more detailed information about Navigator Gas and the offering.
Navigator Gas operates the world's largest fleet of handysize liquefied gas carriers, providing transportation for petrochemical gases, liquefied petroleum gas, and ammonia. The company also owns a stake in an ethylene export terminal in Texas.
The information in this article is based on a press release statement from Navigator Gas.
In other recent news, Navigator Holdings Ltd. disclosed a 6 million share secondary offering by shareholder BW Group Limited. Simultaneously, Navigator Gas intends to repurchase 3 million shares from the underwriters, a move approved by the board of directors and managed by Citigroup and DNB Markets, Inc.
Additionally, Stifel has raised its target price for Navigator Holdings from $19 to $21, maintaining a "Buy" rating, following a strong earnings report. The company's Q1 2024 earnings revealed an adjusted EBITDA of $74 million and an adjusted net income of $23 million.
Navigator Holdings has also announced a $2.5 million investment into preliminary studies for a clean ammonia export facility, a project still in its early stages. The firm is also planning an expansion of its ethylene capacity, set to commence in 2025, projected to significantly increase annual EBITDA.
InvestingPro Insights
Navigator Holdings Ltd. (NYSE: NVGS), also known as Navigator Gas, has recently made headlines with its public offering and share repurchase plan. For investors considering this stock, there are several key metrics and insights from InvestingPro that could provide a deeper understanding of the company's financial health and market position.
InvestingPro Data shows Navigator Gas with a market capitalization of approximately $1.18 billion, underscoring its significant presence in the liquefied gas transportation sector. The company's P/E ratio stands at 13.86, which suggests that the stock could be trading at a reasonable price relative to its earnings. This is further supported by an adjusted P/E ratio of 14.38 for the last twelve months as of Q1 2024, combined with a robust PEG ratio of 0.14, indicating potential undervaluation based on near-term earnings growth projections.
Moreover, the company's revenue growth has been positive, with a 12.01% increase over the last twelve months as of Q1 2024. This financial performance is a testament to Navigator Gas's operational efficiency and market demand for its services. Additionally, the company boasts a strong gross profit margin of 55.66%, emphasizing its ability to manage costs effectively while maintaining profitability.
InvestingPro Tips highlight several aspects that may interest investors. Navigator Gas is noted for trading with low price volatility, which could appeal to those seeking a more stable investment in the energy transportation industry. Furthermore, analysts predict the company will be profitable this year, a sentiment echoed by the fact that Navigator Gas has been profitable over the last twelve months.
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