Why Torm Shares Are Getting Hammered

Torm PLC (NASDAQ:TRMD) shares are trading lower by 12.07% to $28.75 Thursday morning after the company announced the commencement of a secondary public offering of 5 million of its Class A common shares by a selling shareholder.

What Else?

Torm says the selling shareholder has granted the underwriters in this offering an option for a period of 30 days to purchase up to 750,000 additional Class A common shares on the same terms and conditions.

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Torm says the company will not receive any of the proceeds from the sale of the Class A common shares by the selling shareholder. Torm has meanwhile agreed to pay all company expenses relating to registering the securities.

According to data from Benzinga Pro, Torm PLC has a 52-week high of $36.60 and a 52-week low of $8.05.