Oil and gas services provider Flowco Holdings has announced the launch of its IPO to raise $392m by offering 17.8 million shares priced between $21 and $23 each.
Cornerstone investors have shown interest, intending to purchase $125m worth of shares, or 32% of the deal.
At the proposed price range’s midpoint, Flowco Holdings would achieve a fully diluted market value of $1.9bn.
The net proceeds from the IPO are earmarked for repaying debt under the existing credit agreement, redeeming certain equity interests and for general corporate purposes.
The underwriters have been granted a 30-day option to buy up to an additional 2.67 million shares of Class A common stock.
Flowco has applied to list on the NYSE under the ticker symbol FLOC.
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By GlobalDataThe offering’s lead bookrunning managers include J.P. Morgan, Jefferies, Piper Sandler and Evercore ISI, with several other financial institutions serving as joint book-running managers and co-managers.
The IPO announcement by Flowco follows a trend among oil and gas companies of progressively seeking to enter the stock market, supported by the rise in crude prices over the past two years.
Service providers like Flowco are also benefitting from these price increases, given that their success is closely linked to the industry’s expansion and profitability.
Flowco Holdings was formed in June 2024 through the merger of Flowco Production Solutions, Estis Compression and Flogistix. The company’s product suite, which includes high-pressure gas lift and vapour recovery unit solutions, is complemented by proprietary digital systems designed to enhance the profitability and lifespan of active wells.
The company reported $425m in revenue for the 12 months ending 30 September 2024. It is expected to price its shares during the week of 13 January 2025, with a syndicate of financial companies managing the IPO process.
