**Hajioannou Backs Safe Bulkers’ 12 Million Share Placement to Fund New Vessels**
Safe Bulkers, a prominent player in the dry-bulk shipping industry, has announced its intention to raise capital through a private placement of approximately 12 million new common shares. The proceeds from this initiative are designated for the company's newbuilding program and potential further vessel acquisitions. This announcement was made on Wednesday, just over three months after Safe Bulkers' shares began trading on Euronext Athens, complementing its existing listing on the New York Stock Exchange.
Polys Hajioannou, the chief executive officer and largest shareholder of Safe Bulkers, has expressed his commitment to subscribe for 2 million shares at the eventual offer price. However, it is noted that his allocation may be adjusted to accommodate other investors. The final details regarding the number of shares and their pricing will be determined by the company's board in collaboration with the placement managers, following an accelerated bookbuilding process.
The funds raised from this private placement are expected to bolster the company's liquidity and finance its ongoing newbuilding program. Additionally, Safe Bulkers may utilize a portion of the proceeds for acquiring new vessels, purchasing second-hand ships, and addressing general corporate needs.
As part of its strategic initiatives, Safe Bulkers is engaged in an extensive fleet renewal program. According to the company's latest financial results, as of July 24, it had an orderbook consisting of 10 newbuildings, which includes nine Kamsarmax vessels and one Capesize vessel. Notably, two of the Kamsarmax ships are dual-fuel methanol vessels, with deliveries scheduled to extend through 2029. By that date, Safe Bulkers had already invested $91.5 million towards nine of the newbuildings, excluding the Capesize vessel, and projected remaining capital expenditure requirements amounting to $277.2 million. The financing for the Capesize newbuilding is being arranged separately through a finance lease.
As of the same date, the company operated a fleet of 46 vessels, which included two vessels held for sale. Financially, Safe Bulkers reported having $153.2 million in cash, deposits, and restricted cash, along with $204.5 million in undrawn borrowing capacity.
The private placement is being managed by Piraeus Bank, DNB Carnegie, and Fearnley Securities, which are acting as joint global coordinators and bookrunners. The shares will be offered exclusively to institutional investors outside the United States, in accordance with Regulation S of the US Securities Act. Within the European Economic Area, participation is limited to qualified investors under the EU Prospectus Regulation, with similar restrictions applying to investors in the United Kingdom.
In conjunction with the placement, Safe Bulkers, along with its board members and executive management, will enter into customary 180-day lock-up agreements following the completion of the offering, subject to standard exceptions.
On the day of the announcement, trading of Safe Bulkers shares on Euronext Athens was temporarily suspended at the company's request. Euronext Athens confirmed the suspension early Wednesday morning. The results of the bookbuilding process, including the final offer price and the number of shares issued, are anticipated to be announced no later than 2 PM Greek and Cyprus time on Wednesday.
Safe Bulkers' listing on Euronext Athens is still in its early stages, having commenced on June 2, 2026. This milestone made Safe Bulkers the first shipping company to have its common stock traded on both the New York Stock Exchange and Euronext Athens, marking a significant achievement in the company’s growth strategy.
As Safe Bulkers moves forward with this capital-raising initiative, the shipping industry will be watching closely to see how the company leverages these funds to enhance its fleet and expand its operations in the competitive dry-bulk market.