Shares of Flowco Holdings opened nearly 21% above the initial public offering price in their market debut on Thursday, giving the oilfield services provider a market value of about $2.55 billion.
The company’s shares opened at $29 apiece, compared with the IPO price of $24.
Hopes of a friendlier regulatory environment for deals and offerings under the incoming Donald Trump administration have bolstered investor appetite in fresh stock flotations.
Strong equity markets and falling interest rates have also boosted companies’ confidence to come forward with listings.
Houston, Texas-based Flowco sold 17.8 million shares above the marketed range of $21-$23 apiece to raise $427.2 million.
The company was formed in June through a three-way merger between Flowco Production Solutions, Estis Compression and Flogistix.
Shares of its peer Kodiak Gas Services have nearly tripled from the IPO price, since going public in 2023.
Buyout firms Global Energy Capital and White Deer Energy will continue to collectively control Flowco after the offering.
J.P. Morgan, Jefferies and Piper Sandler were the lead underwriters. The company plans to use the IPO proceeds to repay debt, among other purposes.
(Reporting by Atharva Singh and Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)