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.
UPDATE:
Wilks Brothers-backed ProFrac Sees Tepid NASDAQ Debut
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.
Recommended Reading
EPA Faces Backlash for New Regulations Threatening Permian Production
2022-06-28 - Texas Gov. Greg Abbott said EPA’s actions could limit Permian Basin production, which could substantially increase pump prices.
OTC 2022: Decarbonizing Oil and Gas Operations
2022-04-29 - Meeting the world’s energy needs while reducing the industry’s impact on climate change.
Ending Routine Flaring with Digital Flare Mitigation
2022-04-19 - Crusoe Energy Systems has pioneered a unique solution that provides shale oil and gas companies with an effective, reliable, and cost-free alternative to routine flaring by leveraging a technology that harnesses stranded methane to enable energy-intensive computation.
Lowering Greenhouse-gas Emissions of Compressor Operations
2022-06-13 - Interest has never been greater in the role that compressor valves play in reducing overall emissions and achieving ESG targets.
OTC 2022: How BP is Optimizing Gulf of Mexico for Net-zero World
2022-05-02 - BP’s Starlee Sykes provided an inside look during an OTC keynote presentation on how the operator is optimizing all four of its producing hubs in the Gulf of Mexico as part of its net-zero goals.