IMPP Stock Alert: 7 Things to Know as Spinoff Imperial Petroleum Starts Trading


Shareholders of Imperial Petroleum (NASDAQ:IMPP) experienced a rare day that featured quadruple-digit gains. After experiencing stock halts all day, shares of IMPP stock closed up by 1,700%, and are up another 2% after hours.

miniature oil barrel and oil well figures on top of stack of money

Source: Shutterstock

So what do you need to know?

Imperial Petroleum spun off from StealthGas (NASDAQ:GASS) and began trading on the Nasdaq today.

Shareholders of GASS stock received one share of IMPP stock for every eight shares of GASS stock owned, and one share of Imperial Petroleum preferred stock for every 48 GASS shares owned as of the market close on Nov. 23.

IMPP stock is attracting lots of investor attention today due to its outsized gains. Let’s take a deeper look into the details of the spinoff.

IMPP Stock: 7 Things to Know

  1. Imperial Petroleum operates as a holding company that provides petroleum product and international transportation services to oil producers, refineries and commodities traders. The company owns three medium-range tankers and one Aframax oil tanker. Combined, the fleet has a capacity of 255,805 deadweight tons.
  2. The company is headquartered in Athens, Greece, and will be led by StealthGas CEO Harry Vafias.
  3. StealthGas operates as a ship-owning company that provides liquefied petroleum gas (LPG) to the international shipping industry. The company has a fleet of 45 LPG carriers with a combined capacity of 437,973 cubic meters. StealthGas was founded in 2004 and is headquartered in Athens, Greece.
  4. Imperial Petroleum will remain a wholly owned subsidiary of StealthGas.
  5. Furthermore, Imperial Petroleum’s Series A cumulative redeemable perpetual preferred stock will trade on the Nasdaq under the ticker IMPPP. The liquidation preference is set at $25 per share.
  6. Its financials are susceptible to factors such as currency exchange rates, vessel values, dry-docking costs, insurance costs and changes in charter hire rates.
  7. IMPP stock currently trades at a roughly $30 million market capitalization. Micro-cap stocks are much riskier than their larger counterparts, and there is no guarantee that these outlandish gains will continue.

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On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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