Oilfield services provider Flowco raised $427 mln through its US IPO

Flowco Holdings announced on Wednesday that it had raised $427.2 Million after pricing its U.S. Initial Public Offering above its target range.

Flowco set the price of its 17.8 million shares to $24 per share. The company advertised to list its stock between $21 and $23.

The U.S. IPO Market has been revitalized by strong equity markets, falling rates of interest and the hope that the incoming Trump Administration will create a more friendly regulatory environment.

Donald Trump, the new president of the United States, has promised to increase U.S. natural gas and oil production, already at record levels, by removing what he considers unnecessary bureaucracy and regulation.

Flowco, for example, stands to benefit from increased investor confidence in the sector.

Venture Global, second largest U.S. producer of liquefied gas, announced earlier this week that it would be seeking to raise as much as $2.30 billion in what will likely be the biggest listing by an American energy company in more than 10 years.

Houston-based Flowco specializes services that improve the rate at which oil and gas is extracted from wells. The company's two main segments are production solutions and natural-gas technologies.

Last year, the company was formed by a merger of three firms that specialize in services to improve oil and gas extraction rates from wells. Global Energy Capital, White Deer Energy and Flowco Production Solutions merged their companies in June.

Flowco's shares will begin trading at the New York Stock Exchange under the ticker "FLOC" on Thursday.

J.P. Morgan is the lead underwriter of the offering, followed by Jefferies. Reporting by Pritam Biwas in Bengaluru, Editing by Devika Syamnath, and Shakesh Kuber

(source: Reuters)