TORM plc announced a capital increase that will issue 2,395,426 new ordinary shares, a move designed to settle a USD 17 million loan note tied to the delivery of a 2010‑built LR2 product tanker and to meet the exercise of restricted share units (RSUs). The new shares carry no special rights and entitle holders to dividends and other corporate benefits from the date of issuance.
The loan‑note settlement portion of the capital raise involved 748,569 shares, which were issued to pay off the USD 17 million debt associated with the vessel acquisition. The remaining 1,646,857 shares were issued to cover the RSU exercise, with 1,558,790 shares subscribed at DKK 0.07 and 88,067 shares at DKK 140.2, reflecting the different exercise prices of the units. The total value of the new shares is USD 23,954.26, with each share having a nominal value of USD 0.01.
All shares are subject to a 40‑day lock‑up period. After the lock‑up expires, the shares are expected to be admitted to trading on Nasdaq Copenhagen. The capital increase was executed without pre‑emption rights for existing shareholders, meaning the new equity is raised directly rather than through a rights offering.
Strategically, the capital increase supports TORM’s fleet renewal and expansion agenda. By converting debt into equity, the company preserves cash that can be deployed for future vessel acquisitions, fleet optimization, or other capital‑intensive projects. The move also signals management’s confidence in continued growth, echoing CEO Jacob Meldgaard’s remarks in the Q3 2025 earnings report that TORM delivered its strongest quarterly result so far in 2025 and that the company’s integrated operating model and people are driving long‑term value.
TORM’s broader financial strategy includes significant refinancing commitments—up to USD 857 million—to reduce cash break‑even rates and extend maturity profiles. The company also maintains a distribution policy that returns excess liquidity to shareholders quarterly, with an interim dividend of USD 0.62 per share approved for Q3 2025. Together, the capital increase and refinancing framework position TORM to capitalize on favorable market conditions while maintaining a solid balance sheet.
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