Infinity Natural Resources, Inc. Announces Full Exercise and Closing of Over-allotment Option

Rhea-AI Summary

Infinity Natural Resources (NYSE: INR) announced the full exercise of the over-allotment option by its IPO underwriters. The underwriters purchased an additional 1,987,500 shares of Class A common stock at the IPO price of $20.00 per share, generating net proceeds of $37,365,000 for Infinity. This follows the company's previous IPO of 13,250,000 shares.

The over-allotment exercise closed on February 6, 2025. The offering was managed by multiple financial institutions, with Citigroup, Raymond James, and RBC Capital Markets serving as joint book-running managers, alongside BofA Securities, Capital One Securities, and Truist Securities.

Positive

• Successfully raised additional $37.4M through over-allotment exercise
• Strong market demand demonstrated by full exercise of over-allotment option
• Broad support from major financial institutions as underwriters

Negative

• Potential dilution of existing shareholders due to additional share issuance

Insights

Investment Banking Analyst

The full exercise of the over-allotment option (also known as the greenshoe option) by Infinity Natural Resources' underwriters is a significant positive indicator for market confidence in the company's IPO. This additional sale of 1,987,500 shares brings the total offering to 15,237,500 shares, with aggregate gross proceeds of approximately $304.75 million ($265 million from initial offering plus $39.75 million from the over-allotment).

The complete exercise of the over-allotment option typically signals strong institutional demand and price stability in the aftermarket. The impressive syndicate of 13 investment banks, led by top-tier institutions, suggests robust distribution capabilities and extensive due diligence. This broad underwriter participation helps ensure diverse institutional placement and potentially better aftermarket support.

For investors, this successful completion indicates:

• Strong institutional appetite for the stock, which typically supports better price stability
• Enhanced market liquidity due to the increased float
• Substantial capital injection strengthening the company's balance sheet
• Broader institutional ownership base, which often leads to better research coverage and market visibility

The natural resources sector timing appears strategic, given current market conditions and growing interest in domestic energy resources. The successful offering positions Infinity with significant capital for potential acquisitions, debt reduction, or operational expansion in the Appalachian Basin.

MORGANTOWN, W.Va.--(BUSINESS WIRE)-- Infinity Natural Resources, Inc. (“Infinity”) (NYSE: INR) announced today that the underwriters of its previously announced initial public offering (“IPO”) of 13,250,000 shares of its Class A common stock have fully exercised their option to purchase an additional 1,987,500 shares of Class A common stock at the IPO price of $20.00 per share, less underwriting discounts and commissions, resulting in net proceeds of $37,365,000 to Infinity. The exercise of the underwriters’ option closed on February 6, 2025.

Citigroup, Raymond James and RBC Capital Markets are acting as joint book-running managers for the offering. BofA Securities, Capital One Securities and Truist Securities are also acting as joint book-running managers. KeyBanc Capital Markets and Stephens Inc. are acting as senior co-managers. Comerica Securities, Fifth Third Securities, First Citizens Capital Securities and BTIG are acting as co-managers. BOK Financial Securities, Inc. and Zions Capital Markets are acting as junior co-managers. The offering of these securities is being made only by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. When available, a copy of the final prospectus may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at 800-831-9146; Raymond James & Associates, Inc., Attention: Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, by telephone at 800-248-8863 or by email at prospectus@raymondjames.com; or RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, New York, New York 10281, by telephone at 877-822-4089 or by email at equityprospectus@rbccm.com.

Important Information

A registration statement on Form S-1 relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission (the “SEC”). This press release does not constitute an offer to sell or the solicitation of an offer to buy 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 Infinity

Infinity (NYSE: INR) is a growth oriented, free cash flow generating, independent energy company focused on the acquisition, development, and production of hydrocarbons in the Appalachian Basin. Our operations are focused on the volatile oil window of the Utica Shale in eastern Ohio as well as our stacked dry gas assets in both the Marcellus and Utica Shales in southwestern Pennsylvania.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206146619/en/

Infinity Natural Resources, Inc.

Gregory Pipkin Jr.

Vice President of Corporate Development and Strategy

ir@infinitynr.com

Source: Infinity Natural Resources, Inc.

FAQ

How much did INR raise from the over-allotment option exercise?

INR raised $37,365,000 in net proceeds from the over-allotment option exercise through the sale of 1,987,500 additional shares at $20.00 per share.

When did INR's over-allotment option close?

The over-allotment option exercise closed on February 6, 2025.

How many shares were offered in INR's initial IPO?

INR's initial IPO consisted of 13,250,000 shares of Class A common stock.

What was the IPO price for INR's shares?

The IPO price for INR's shares was $20.00 per share.

Who were the lead underwriters for INR's IPO?

Citigroup, Raymond James, and RBC Capital Markets acted as joint book-running managers for the offering.