Dec 6 (Reuters) - Oilfield services provider Flowco
showed a surge in revenue when it filed paperwork for a U.S.
initial public offering on Friday, becoming the latest to
capitalize on a recent revival in investor appetite for newly
listed stocks.
The U.S. IPO market, which had largely avoided large deals
for nearly three years, is experiencing a revival as improving
investor sentiment and near-record-high equity markets fuel
renewed activity.
Analysts anticipate a significant resurgence in stock market
flotations next year, driven by pent-up demand and diminishing
economic uncertainty, creating a more favorable environment for
companies to go public.
Flowco did not reveal the number of shares it intends to
sell or the potential size of its offering, but Reuters reported
in September, citing sources, it could seek a valuation of as
much as $2 billion.
Oil and gas companies are increasingly pursuing stock market
launches, buoyed by higher crude prices over the past two years
which have significantly boosted the performance of energy
producers.
Service providers such as Flowco are also benefiting from
these price surges, as their fortunes are closely tied to the
sector's growth and profitability.
Flowco's business is divided into two segments - production
solutions and natural gas technologies. It saw total revenue
surge to $349.3 million in the nine months ended Sept. 30,
versus $167.9 million a year earlier.
The company's income from operations jumped 49% to $82.8
million over the same period.
The Houston, Texas-based firm specializes in services that
help improve the rate of oil and gas extraction from wells.
While the timing of the IPO is unclear, Reuters had previously
reported it could be as early as the first half of 2025.
It plans to trade on the New York Stock Exchange under the
ticker symbol 'FLOC'.
J.P. Morgan, Jefferies and Piper Sandler are the lead
underwriters of the offering.