ProFrac Holding Corp., an oilfield services company backed by billionaires Dan and Farris Wilks, priced its IPO at $18 per share, well below its target range, valuing the firm at $1.7 billion.
The company had earlier set the indicative price range at between $21 and $24 apiece.
ProFrac’s listing, which raised $288 million from the issue of 16 million new shares, comes in a rocky year for U.S. capital markets and underscores the challenges facing IPO-bound Reddit Inc and Mobileye, the self-driving car unit of Intel Corp.
Several companies have postponed or shelved their U.S. listing plans as the Russia-Ukraine war and the prospect of aggressive rate hikes from the Federal Reserve roil global markets.
Excelerate Energy’s IPO in April was a bright spot, however, as the provider of floating LNG terminals benefited from the war boosting energy prices and driving up demand for LNG.
Founded in 2016, ProFrac provides hydraulic fracturing services with operations primarily focused in Texas, Louisiana, Oklahoma, Uinta and the Appalachian regions.
J.P. Morgan, Piper Sandler and Morgan Stanley were the lead underwriters for the offering.
2022-11-16 - Here’s a snapshot of recent energy deals including a $155 million sale in the Permian Basin by Diamondback Energy and Chart’s $4.4 billion acquisition.
2022-09-08 - Natural gas pipeline and storage assets serve Dallas-Fort Worth region.
2022-09-09 - Sporadic deal flow and the emergence of minerals companies highlight 2022 — a year that started out with swagger before the war in Ukraine upended commodity prices.
2022-09-20 - Vinland Energy LLC retained Seaport Global Securities LLC for the sale of its portfolio of producing and midstream assets in the southern Appalachian Basin, located primarily in eastern Kentucky.
2022-09-20 - EOG Resources retained TenOaks Energy Advisors for the sale of majority operated properties located in the Texas Panhandle, which TenOaks said is poised for continued growth via inventory of Cleveland / Marmaton locations with attractive economics.