Ocean Rig UDW Inc. (NASDAQ: ORIG) has announced that DryShips Inc. (NASDAQ: DRYS) will be selling a total of 5 million shares of common stock in Ocean Rig. The move will raise capital via an underwritten public offering under Ocean Rig’s effective shelf registration statement with the Securities and Exchange Commission. Deutsche Bank Securities and Credit Suisse are acting as joint book-running managers for the offering.

The press release showed that all net proceeds from the stock sale will be received by DryShips, so the selling shareholder will receive all of the proceeds rather than Ocean Rig adding any capital into its treasury. This is not likely to be the last share sale either as DryShips is still expected to own approximately 61.3% of Ocean Rig’s outstanding shares after the offering.

Ocean Rig UDW closed at $17.55, so this would add some $87.8 million into the DryShips cash balance if the share sale managed to somehow go off at the closing price. Ocean Rig is worth some $2.3 billion in market cap versus $893 million in market cap for DryShips.

Over the last year DryShips shares have traded in a range of $1.46 to $3.84. Its closing bell price of $2.16 generates a market value of about $893 million.

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