Flowco Holdings (FLOC, Financials), had shares trading at $29.53, a 23% premium over its initial public offering price of $24 as of 1:14 p.m. ET on Friday. Beginning trade on the New York Stock Exchange on Thursday, the Houston-based business specializes in production optimization and methane abatement solutions for the oil and natural gas sector.
Recently completing its first public offering, Flowco priced 17.8 million Class A common stock at $24 per share. Underwriters have a 30-day option to buy extra 2.67 million shares at IPO price. Depending on typical closing criteria, the offer should conclude later today.
With the remaining funds distributed to debt under the company's current credit arrangement, proceeds from the IPO will be utilized to redeem certain equity shares owned by non-affile holders. According to Flowco, the money would assist its long-term development plan and help to enhance its financial situation.
J.P. Morgan, Jefferies, Piper Sandler, Evercore ISI led the IPO; BMO Capital Markets, Pareto Securities, and TPH&Co., a branch of Perella Weinberg Partners, also participated. Co-managers were Fearnley Securities and Pickering Energy Partners.
Flowco offers natural gas and oil producers solutions meant to increase their operational lifetime and boost profitability of their assets. Its products range from artificial lift systems to methane abatement technology to industrial optimization.
This article first appeared on GuruFocus.