Flowco Holdings has raised $427.2 million after pricing its U.S. initial public offering above its targeted range, the oilfield services provider said on Wednesday.
Flowco priced its offering of 17.8 million shares at $24 each. The company had marketed to list its shares in the range of $21 and $23.
Strong equity markets, falling interest rates and hopes of a friendlier regulatory environment for deals under the incoming Trump administration have rejuvenated the U.S. IPO market.
Donald Trump, who takes office as president on Monday, has also promised to maximize U.S. oil and natural gas production, which is already at record highs, in part by clearing away what he deems as unnecessary regulation and bureaucracy.
Service providers such as Flowco stand to benefit from the increased investor optimism surrounding the sector.
Venture Global, the second-largest U.S. liquefied natural gas producer, said earlier this week it was seeking to raise up to $2.30 billion, in what is likely to be the largest listing by an energy company in the U.S. in more than a decade.
Houston, Texas-based Flowco specializes in services that help improve the rate of oil and gas extraction from wells. Its business is divided into two segments – production solutions and natural gas technologies.
The company was created last year by a three-way merger between firms specializing in services that help improve the rate of oil and gas extraction from wells. In June, its owners Global Energy Capital and White Deer Energy struck a deal to combine Flowco Production Solutions, Estis Compression and Flogistix.
Flowco shares are expected to start trading on the New York Stock Exchange on Thursday under the ticker symbol “FLOC”.
J.P. Morgan, Jefferies and Piper Sandler are the lead underwriters of the offering.
(Reporting by Pritam Biswas in Bengaluru; Editing by Devika Syamnath and Shailesh Kuber)