NEW YORK – Teekay Tankers Ltd. said Friday that it plans to raise at least $96 million, by selling 20 million of its shares for $4.80 per share, to help fund its purchase of five oil tankers.
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In midday trading, Teekay shares fell more than 12 percent.
Teekay, which transports oil, said it is also offering its underwriters a 30-day option to buy an additional 3 million shares.
Bermuda-based Teekay announced on Thursday that it will buy the oil tankers for $230 million.
News of a stock sale often weighs on company shares because it makes existing investors' stakes worth less.
Shares of Teekay fell 67 cents, or 12.4 percent, to $4.73 in midday trading Friday. Its shares are up 40 percent over the past year.