WL Ross puts Diamond S Shipping IPO on hold

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ship boat oil tankerPrivate equity firm WL Ross has put its plans to float its portfolio company Diamond S Shipping Group on hold.

WL Ross founder Wilbur Ross said the final proposal by underwriters was too low and Diamond S will not issue shares at a price that is below its market value, according to Bloomberg.

The company has previously filed to offer 14m shares priced at between $14 and $16 apiece and was expected to set the final price yesterday.

Ross said, “Diamond S does not need the money and will not issue stock at the relatively unfavorable price created by the present stock market environment. We are not opposed to being publicly owned but not at any price.”

The shopping company planned to use the IPO proceeds to buy 10 new ships to add to its current fleet of 33 tankers.

In August 2011 WL Ross joined  founding firm First Reserve in providing capital for the acquisition of 30 medium-range refined product carriers.

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