Britannia Bulk Holdings shares fall after IPO

According to Securities and Exchange Commission filings, Britannia had expected the IPO to price between $17 and $19 per share.

In midday trading, Britannia shares fell 78 cents, or 5.2 percent, to $14.22. After opening at $14.25, the stock has traded between $14.07 and $14.50 during the session.

Britannia's debut coincided with a broader market decline, which was due in part to jitters after FedEx Corp. reported a fourth-quarter loss and issued a gloomy outlook for its shipping business.

The IPO underwriters have an option to buy up to about 1.3 million additional shares to cover any overallotments. If the option is not exercised, Britannia raised about $112.8 million from the IPO, which will be used to help repay and refinance debt.

The offering is expected to close on Monday, subject to customary closing conditions.

Britannia is incorporated in the Republic of the Marshall Islands, but its day-to-day operations are conducted from Great Britain and Denmark.

The company's current owned fleet consists of 22 vessels, and the company has contracted to buy an additional six vessels. As of March 31, Britannia also chartered 45 drybulk vessels. The company also provides maritime logistics services for its customers.

For the first three months of 2008, Britannia's earnings totaled $31.5 million on revenue of $300.2 million. The company said about 74 percent of its revenue was earned from shipping drybulk commodities to and from the Baltic and Northern Europe regions.

Goldman Sachs and Banc of America Securities are serving as the IPO's lead underwriters. Dahlman Rose & Co. and Oppenheimer & Co. are also backing the offering.