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DryShips shares smashed by investors on news of another reverse stock split

Shares in George Economou’s Nasdaq-listed DryShips were given a hammering by investors on Friday after the company announced a 1-4 reverse stock split, the second reverse stock split this year.

DryShips shares closed down on Friday at just 70 cents, a single day drop of 32%, after the latest reverse split was announced.

In January, DryShips shares were valued at $8.08 after a 1-8 reverse stock split and over the last three months had fallen back to around the $1 mark over investor concerns of share dilution stemming from multiple share sales to Kalani Investments.

This latest plunge in share price means that DryShips shares have dropped by more than 97% since the end of 2016.

April 11 will see the reverse stock split take effect, subjecting DryShips shares to increased selling pressure and wild price swings.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.


  1. Mr. Economou does not show a lot of respect for his shareholders to say the least.

  2. I have not followed the DryShips saga, but a reverse stock split (share consolidation is a better description) does not affect the total value of a company. It simply means that the smaller number of shares are worth more. It is not a corrupt or dishonest practice.

    However, if there is a private placement of shares (as appears to have happened here with Kalani Investments) then existing shareholders will have their shareholding diluted. This is perfectly legal, but existing shareholders will suffer to a greater or lesser extent.

    A rights issue is a fairer way for listed companies to raise further capital. All existing shareholders are offered the opportunity to buy additional shares, at a set price, in proportion to their existing shareholding.

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