ProFrac Holding (PFHC) shares were trading slightly higher on Friday following the fracking company’s downsized $288M initial public offering.
Shares of PFHC opened at $17.60 before climbing. The stock recently changed hands at $18.56, up 2%, at approximately 11:45 a.m. ET.
PFHC priced 16M Class A common shares at $18 per share, raising approximately $288M. Underwriters were granted a 30-day option to buy up to 2.4M additional shares. J.P. Morgan, Piper Sandler and Morgan Stanley are acting as lead bookrunners on the deal.
The company said it expects to receive net proceeds of $273M from the deal, or $314M if the underwriters exercise their option in full. PFHC plans to use the funds mostly to purchase additional shares and pay down debt.
PFHC said in a filing Wednesday that it planned to offer 16M shares priced between $21 and $24, which would have raised around $360M if priced at the midpoint.
The company added in the filing that existing shareholders THRC Holdings and the Farris and Jo Ann Wilks 2022 Family Trust had indicated they may buy an aggregate of up to $117M or 5.2M of the Class A shares being offered, based on the midpoint range, at the IPO price. It added that the purchases would reduce the number of shares available for sale to the general public.
Based in Texas, PFHC provides hydraulic fracturing services to oil and gas companies engaged in exploration and production.
For more on ProFrac (PFHC), check out SA contributor Donovan Jones’s “ProFrac Holding Targets $360M IPO”.