Teekay Tankers to sell 20 million shares in stock offering; shares fall

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.

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.