ATHENS, Greece ( TheStreet) -- DryShips ( DRYS) said Wednesday its offshore drilling subsidiary's offering values the unit at $2.27 billion. DryShips said earlier this month its wholly-owned Ocean Rig UDW planned to raise $500 million in a private offering
>>DryShips Surges on Subsidiary's Private Offering DryShips shares traded 3.6% lower Wednesday to $5.98. On Wednesday, the drybulk shipper said Ocean Rig UDW was priced at $17.50 per share. Following the share sale, DryShips' ownership stake in the unit will be reduced to between 78% and 80%. The offering will be made to Norwegian professionals and eligible counterparties under Norwegian trading regulations, to non-U.S. residents and in a concurrent private placement in the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act. Proceeds from the sale are "expected to be used to finance construction costs of the ultra deepwater newbuilding drillships under construction at Samsung, exercise options to build further ultra deepwater drillships and general corporate purposes." Last week analysts at Credit Suisse upgraded DryShips' stock to outperform from neutral. The equity research firm also lifted its price target on DryShips by $4 to $9. >>DryShips Cruises on Upgrade Separately, DryShips said recently it completed its ATM Equity Offering, raising around $350 million since initiating the offering on Sept. 7.