Borr Drilling plans $100 million share offering to raise capital

HAMILTON, Bermuda - Offshore drilling contractor Borr Drilling Limited (NYSE:BORR), currently valued at $501 million and trading at $2.11 per share, announced Wednesday plans for a public offering of approximately 50 million shares seeking to raise $100 million in gross proceeds. According to InvestingPro data, the company operates with a significant debt burden of $2.1 billion while trading at a modest Price/Book ratio of 0.51x.

The company intends to use the proceeds for general corporate purposes, which may include debt service, capital expenditures and funding of working capital, according to a press release statement. This move comes as InvestingPro analysis shows the company is quickly burning through cash, with negative free cash flow of $223.7 million in the last twelve months. Get access to 12+ more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.

The offering will be conducted in two settlements. The first settlement of 30 million shares is expected around July 7, 2025, while the second settlement of 20 million shares is scheduled for August 7, 2025, contingent upon shareholder approval at a special general meeting on August 6.

Several company insiders have indicated plans to participate in the offering. Tor Olav Trøim intends to subscribe for $10 million worth of shares through Drew Holding Ltd., while CEO Patrick Schorn and Bruno Morand plan to invest $1 million and $300,000, respectively.

DNB Carnegie, Clarksons Securities, Citigroup and Goldman Sachs & Co. LLC are serving as joint bookrunners for the offering.

The share offering will be made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on April 11, 2025. Prospective investors can access the prospectus and related documents through the SEC’s website.

If the special general meeting condition is not met, the shares planned for the second settlement will not be issued, though this would not affect shares issued in the first settlement.

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