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Highlights
- IPO Details: Flowco will offer 17.8 million shares of Class A common stock at $24.00 per share, with underwriters holding a 30-day option for 2.67 million additional shares.
- Stock Debut: Flowco's Class A common stock will trade on the NYSE under the ticker symbol "FLOC" starting January 16, 2025.
- Proceeds Utilization: The company plans to use IPO proceeds to redeem equity interests and repay debt under its credit agreement.
Flowco Holdings Inc., a leading provider of production optimization, artificial lift, and methane abatement solutions for the oil and natural gas industry, announced the pricing of its initial public offering (IPO). The offering consists of 17,800,000 shares of its Class A common stock, priced at $24.00 per share.
The IPO also includes a 30-day option for underwriters to purchase an additional 2,670,000 shares at the same offering price, less underwriting discounts and commissions. The total offering size, assuming full exercise of the overallotment option, is expected to exceed $500 million.
Flowco’s Class A common stock is set to debut on the New York Stock Exchange on January 16, 2025, under the ticker symbol “FLOC.” The offering is expected to close on January 17, 2025, subject to the satisfaction of customary closing conditions.
Proceeds Allocation
Flowco intends to use the net proceeds from the IPO for two primary purposes:
- Redeeming Equity Interests: A portion of the proceeds will be allocated to redeem equity interests held by non-affiliate stakeholders.
- Debt Repayment: The remaining funds will be directed toward reducing the company’s indebtedness under its existing credit agreement.
These actions aim to strengthen Flowco's financial position and provide the company with greater flexibility for future growth initiatives.
Underwriting Details
A team of prominent financial institutions is managing the IPO:
- Lead Bookrunning Managers: J.P. Morgan, Jefferies, Piper Sandler, and Evercore ISI.
- Joint Book-Running Managers: BMO Capital Markets, Pareto Securities, and TPH&Co., the energy business of Perella Weinberg Partners.
- Co-Managers: Fearnley Securities and Pickering Energy Partners.
The strong lineup of underwriters reflects investor confidence in Flowco’s potential to deliver value in the energy sector.
About Flowco Holdings Inc.
Flowco specializes in production optimization, artificial lift systems, and methane abatement solutions, serving the oil and natural gas industry. The company’s offerings address critical challenges in energy production, including efficiency and sustainability, positioning Flowco as a key player in its sector.
