Flowco Holdings Inc. Announces Closing of Initial Public Offering

Rhea-AI Summary

Flowco Holdings, a provider of production optimization, artificial lift and methane abatement solutions for the oil and gas industry, has successfully completed its Initial Public Offering (IPO). The company sold 20,470,000 shares of Class A common stock at $24.00 per share, including the full exercise of underwriters' option for an additional 2,670,000 shares.

Trading began on the New York Stock Exchange on January 16, 2025, under the ticker symbol FLOC. The company plans to use the net proceeds to redeem certain equity interests from non-affiliate holders and repay existing credit agreement debt. The IPO was led by J.P. Morgan, Jefferies, Piper Sandler, and Evercore ISI as lead bookrunning managers, with BMO Capital Markets, Pareto Securities, and TPH&Co. serving as joint book-running managers.

Positive

• Successful IPO raising approximately $491.3 million (20.47M shares at $24.00)
• Full exercise of underwriters' option indicating strong demand
• Strategic debt reduction through IPO proceeds
• Strong syndicate of investment banks supporting the offering

Negative

• Proceeds primarily used for debt repayment rather than growth initiatives
• Significant dilution of existing shareholders through large share issuance

Insights

IPO Analyst

The successful IPO of Flowco Holdings represents a notable market entry, raising approximately $491.3 million through the offering of 20.47 million shares at $24.00 per share. The full exercise of the underwriters' option indicates strong institutional interest and demand for the offering. The company's focus on production optimization and methane abatement solutions positions it well in the evolving energy sector, particularly as environmental considerations become increasingly important.

The strategic use of proceeds to redeem equity interests and reduce debt suggests a focus on optimizing capital structure. The involvement of major underwriters like J.P. Morgan, Jefferies and Piper Sandler adds credibility to the offering. For context, this IPO's size places it among the larger energy sector debuts recently, reflecting investor appetite for companies addressing both traditional energy production and environmental concerns.

In simpler terms: A new oil & gas technology company just went public, raising nearly half a billion dollars. They're using the money to buy out some owners and pay off debt. The fact that they sold all available shares, including extra ones, shows investors are very interested in the company.

Energy Sector Analyst

Flowco's successful market debut is particularly significant given its positioning at the intersection of traditional oil & gas operations and environmental technology. Their focus on methane abatement solutions is strategically important as the industry faces increasing pressure to reduce emissions. The artificial lift technology segment also represents a important market, as operators seek to optimize production from mature wells.

The strong underwriter lineup and successful pricing suggest institutional investors see value in Flowco's hybrid business model - combining conventional production optimization with environmental solutions. This dual focus could provide resilience against both commodity price fluctuations and evolving environmental regulations.

For the average person: Think of Flowco as a company that helps oil & gas producers pump more efficiently while also helping them reduce harmful greenhouse gas emissions. It's like having both a performance enhancer and an environmental solution in one package - which is why investors are excited about its potential.

HOUSTON--(BUSINESS WIRE)-- Flowco Holdings Inc. (“Flowco”), a provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry, today announced the closing of its initial public offering of 20,470,000 shares of its Class A common stock at a public offering price of $24.00 per share, including the full exercise by the underwriters of their option to purchase up to an additional 2,670,000 shares of Class A common stock from Flowco at the initial public offering price, less underwriting discounts and commissions. Flowco’s Class A common began trading on the New York Stock Exchange on January 16, 2025 under the ticker symbol “FLOC.”

Flowco intends to use the net proceeds that it receives from the proposed offering to redeem certain equity interests from certain non-affiliate holders, and with respect to the remainder, repay indebtedness under its existing credit agreement.

J.P. Morgan, Jefferies, Piper Sandler and Evercore ISI acted as lead bookrunning managers for the proposed offering. BMO Capital Markets, Pareto Securities and TPH&Co., the energy business of Perella Weinberg Partners, acted as joint book-running managers. Fearnley Securities and Pickering Energy Partners acted as co-managers.

The offering was made only by means of a prospectus. A copy of the prospectus relating to the offering may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; or Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022; by phone at (877) 821-7388; or by email at Prospectus_Department@Jefferies.com; or Piper Sandler & Co., Attn: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402; by phone at (800) 747-3924; or by email at prospectus@psc.com; or Evercore Group, L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055, or by telephone at (888) 474-0200 or email: ecm.prospectus@evercore.com.

A registration statement relating to these securities was filed with, and declared effective by, the SEC on January 15, 2025. Copies of the registration statement can be accessed through the SEC's website at www.sec.gov. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

About Flowco
Flowco is a leading provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. The company’s products and services include a full range of equipment and technology solutions that enable oil and natural gas producers to efficiently and cost-effectively maximize the profitability and economic lifespan of their assets.

Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical facts contained in this press release may be forward-looking statements. These statements generally relate to future events or our future financial or operating performance and include statements regarding the expected size, timing and results of the initial public offering. When used in this press release, words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” and “will,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Flowco believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Flowco’s prospectus. Flowco undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250117484127/en/

Investor Contact:

Jon Byers

investor.relations@flowco-inc.com

Media Contact:

Niki Sikinger

Niki.Sikinger@flowco-inc.com

Source: Flowco Holdings Inc.

FAQ

How much did Flowco Holdings (FLOC) raise in its January 2025 IPO?

Flowco Holdings raised approximately $491.3 million by selling 20,470,000 shares at $24.00 per share in its January 2025 IPO.

What is Flowco Holdings (FLOC) planning to do with its IPO proceeds?

Flowco plans to use the IPO proceeds to redeem certain equity interests from non-affiliate holders and repay indebtedness under its existing credit agreement.

When did Flowco Holdings (FLOC) begin trading on the NYSE?

Flowco Holdings began trading on the New York Stock Exchange on January 16, 2025, under the ticker symbol FLOC.

Which investment banks were the lead bookrunners for Flowco's IPO?

J.P. Morgan, Jefferies, Piper Sandler, and Evercore ISI acted as lead bookrunning managers for Flowco's IPO.

Did Flowco's IPO include an overallotment option exercise?

Yes, the underwriters fully exercised their option to purchase an additional 2,670,000 shares at the IPO price.