Current NINE Stock Info

Company shares up 26% in intraday trading

Nine Energy Service (ticker: NINE) launched its IPO today, becoming the second major service company to go public this year.

Last night, Nine said it would offer a total of 7,000,000 shares of its common stock, priced at $23 per share, with the potential to upsize the offering by another 1,050,000 shares. At this price, the sale would raise $161 million for the company, $185.2 million if the option to upsize the offering is exercised. $23 per share represented the high end of the range given by the company, as it initially announced a share price range of $20 to $23.

But Nine Energy Services opened at $24 and kept going up. Nine reached $29 in intraday trading, representing a gain of 26% above its published listing price. The company closed the day at $26.10, or 13.5% above its listing price.

Nine followed the lead of Liberty Oilfield Services (ticker: LBRT), the year’s first IPO, which launched on Jan. 12, exactly a week before.  Liberty priced its upsized initial public offering of 12,731,092 shares of its Class A common stock at $17.00 per share early on Jan. 12. The shares opened trading on the NYSE at $21.20.  By midday shares of Liberty were trading at almost a 28% premium.

Private equity-backed

Private equity SCF Partners holds the largest share of Nine, and will own about 39% of the company after the offering is completed. Nine Energy Service was formed in early 2013 through the combination of three service companies owned by SCF Partners. The company has made multiple acquisitions since then, including Peak Pressure Control in August 2013, Dak-Tana Wireline in April 2014, Crest Pumping Technologies in June 2014 and G8 Oil Tool in September 2015. Most recently, Nine merged with Beckman, another significant oilfield service company, in February 2017.

The company plans to use the proceeds from this sale to pay down debt, as it has about $240 million split evenly between its own credit facility and Beckman’s residual credit facility.

Cementing services

Nine Energy has two main business lines, focusing on completion and production of a well. Unlike Liberty Oilfield Services, the other major service company to go public in January, Nine’s completions products do not focus on fracturing a well. Instead, the company offers extensive cementing services, completions tools, and wireline and coiled tubing operations. The company’s production products primarily consist of workover services,

The company reports it is operational in all the major U.S. and Canadian basins, with 38 different locations.

Nine Energy Services Launches Second Successful Oilfield Service IPO in 2018

Source: Nine Energy S-1


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