Frontline raises $211 mln in share placement

OSLO, June 26 (Reuters) - Oil tanker shipping group Frontline (FRO.OL: Quote, Profile, Research) has raised 1.071 billion Norwegian crowns ($211.2 million) in a private placement of 3 million new shares to fund a purchases of five tankers, Frontline said on Thursday.

Frontline placed the new shares at 357 crowns per share, on par with Wednesday's closing price. Frontline shares fell 0.4 percent to 355 crowns by 0703 GMT.

Frontline's biggest shareholder, Hemen Holding Ltd which guaranteed the issue, subscribed for 225,000 shares, Frontline said. Hemen is a holding company owned by Norwegian shipping tycoon John Fredriksen.

The proceeds will be used to finance Frontline's planned purchase of five Suezmax tankers for $240 million announced on Wednesday, the company said.

The placement was lead managed by Carnegie with Fearnley Fonds, DnB NOR Markets and Dahlman Rose & Co as co-lead managers.

(Reporting by John Acher)