Desert Peak Minerals IPO: Here's why investors must not get confused

3 min read | January 13, 2022 09:10 PM AEDT | By Raza Naqvi

Desert Peak Minerals IPO: Here's why investors must not get confused — Image source: © Profitimage | Megapixl.com

What investors must know about Desert Peak Minerals IPO

Falcon Minerals Corp. is a publicly-traded company and trades under the stock symbol FLMN on Nasdaq. It was formed through a merger with a special purpose acquisition company (SPAC) in 2018.

The company has again agreed to a merger, and this time it will combine with Desert Peak Minerals in an all-stock transaction.

Desert Peak Minerals IPO ©2022 Kalkine Media®

Under the deal, Falcon will execute a 1-for-4 reverse stock split after the merger is closed. Blackstone, which owns a 40.6 per cent stake in Falcon, has agreed to vote in favour of the merger.

Last year in October, Desert Peak Minerals had announced its plans to go public and had set the price range of its shares between US$ 20 to US$ 23 apiece.

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However, in November, the company delayed its IPO plans. It is probably due to this reason that interested investors are looking up the Desert Peak Minerals IPO.

Bottom line

The merger will likely close by the second quarter of this year, and equity holders of Desert Peak will own around 73 per cent of the existing company. Meanwhile, existing shareholders of Falcon Minerals will own the remaining 27 per cent.

Currently, Falcon aims to issue 235 million Class C common stock shares, and the final number could change after the reverse stock split.

The combined entity could produce 13,500 to 14,500 barrels of oil equivalent per day until June 2022.

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