Oil and gas wellhead services operator Flowco Holdings Inc. (FLOC) priced its IPO at $24.00 – $1.00 above the top of its $21.00-to-$23.00 range – and sold 17.8 million shares – the number of shares in the prospectus – to raise $427.2 million on Wednesday night, Jan. 15, 2025. The market cap is about $2.1 billion. Flowco’s deal is the first big IPO of 2025.
Flowco’s stock is expected to start trading Thursday, Jan. 16, 2025, on the New York Stock Exchange.
J.P. Morgan, Jefferies, Piper Sandler, Evercore ISI, BMO Capital Markets and Pickering Energy Partners acted as the joint book-runners.
Flowco Holdings said it intends to use the IPO’s net proceeds to pay off some debt.
Cornerstone investors BlackRock and American Century Investment Management had indicated interest in buying up to $125 million of stock in the IPO, according to the prospectus.
IPO investors took a shine to Flowco’s IPO due to the company’s impressive revenue growth in the past year and the energy sector’s strength.
Flowco Holdings, based in Houston, provides proprietary well production solutions and natural gas technologies to its clients, who include some of the largest U.S. oil and gas producers. Its core technologies “include high pressure gas lift (“HPGL”), conventional gas lift, plunger lift and vapor recovery unit (“VRU”) solutions, all of which are overlaid by our proprietary digital technologies and solutions that enable real-time remote monitoring and control to maximize efficiencies of our products and services,” the prospectus said.
Flowco Holdings was formed in 2024 through the merger of three companies – Flowco Production Solutions, Estis Compression and Flogistix. The company is incorporated in Delaware.
The company is profitable. For the 12 months that ended Sept. 30, 2024, Flowco Holdings reported net income of $75.97 million on revenue of $424.75 million.
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