Flowco Holdings, which provides equipment and services that optimize the production of oil and gas wells, announced terms for its IPO on Tuesday.
The Houston, TX-based company plans to raise $392 million by offering 17.8 million shares at a price range of $21 to $23. Cornerstone investors intend to purchase $125 million worth of shares in the offering (32% of the deal). At the midpoint of the proposed range, Flowco Holdings would command a fully diluted market value of $1.9 billion.
The company was formed this year through the merger of Flowco Production Solutions, Estis Compression, and Flogistix. It calls itself a leading provider of production optimization, artificial lift, and methane abatement solutions for the oil and natural gas industry. Its products and services allow energy producers to maximize the profitability and lifespan of active wells. Its core products include high pressure gas lift, conventional gas lift, plunger lift, and vapor recovery unit solutions, overlaid by its proprietary digital systems. Its products and services seek to optimize production and counteract the natural decline in production rates that wells experience over time.
Flowco Holdings was founded in 1996 and booked $425 million in revenue for the 12 months ended September 30, 2024. It plans to list on the NYSE under the symbol FLOC. J.P. Morgan, Jefferies, Piper Sandler, Evercore ISI, BMO Capital Markets, and Pareto Securities are the joint bookrunners on the deal. It is expected to price during the week of January 13, 2025.
