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Oilfield services provider Flowco shows revenue surge in US IPO filing
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Oilfield services provider Flowco shows revenue surge in US IPO filing
Dec 6, 2024 3:03 PM

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.

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