EQT completes public offering of common stock of Kodiak Gas Services

Rhea-AI Summary

EQT, through its infrastructure funds III and IV, has completed an underwritten public offering of 5,500,000 shares of Kodiak Gas Services (NYSE: KGS) common stock. The offering generated gross proceeds of $232,925,000. Goldman Sachs & Co. and J.P. Morgan served as the underwriters for the offering, which was completed on December 13, 2024. Notably, Kodiak Gas Services did not participate in the share sale and received no proceeds from the transaction.

Positive

• None.

Negative

• Large shareholder EQT reduced its stake in KGS through the sale of 5.5M shares
• Significant secondary offering may create selling pressure on KGS stock
• No proceeds from the offering will benefit the company's operations or growth

Insights

Financial Analyst

The $232.9M secondary offering by EQT represents a significant liquidity event, with 5.5M shares being sold to the market. This transaction indicates EQT's strategic move to reduce its position in Kodiak Gas Services, potentially impacting the stock's float and trading dynamics. The involvement of major underwriters Goldman Sachs and J.P. Morgan adds credibility to the offering but could create temporary selling pressure on KGS shares. While the company itself doesn't receive any proceeds, the increased public float may improve trading liquidity for retail investors. The timing and size of this offering suggest EQT's confidence in current market valuations for Kodiak's shares.

Market Research Analyst

This secondary offering impacts Kodiak Gas Services' ownership structure and market dynamics. With a market cap of $3.57B, this offering represents approximately 6.5% of the company's value. The transaction increases the public float, which could enhance trading volume and potentially reduce stock price volatility. While secondary offerings often face short-term price pressure, they typically lead to improved long-term trading characteristics. The successful placement through top-tier investment banks suggests strong institutional interest in KGS stock, though investors should monitor potential impact on share price stability during the absorption period.

• The offering resulted in gross proceeds of USD232,925,000 

NEW YORK, Dec. 13, 2024 /PRNewswire/ -- An affiliate of the funds known as EQT Infrastructure III and EQT Infrastructure IV ("EQT") is pleased to announce the completion of an underwritten public offering (the "Offering") of 5,500,000 shares of common stock of Kodiak Gas Services, Inc. (NYSE: KGS) (the "Company") for gross proceeds of USD232,925,000. Goldman Sachs & Co. LLC and J.P. Morgan acted as the underwriters for the Offering, which was completed on December 13, 2024. The Company did not sell any shares of its common stock in the Offering and did not receive any proceeds from the sale of the shares of its common stock sold by EQT.

Contact

EQT Press Office, press@eqtpartners.com

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EQT - Kodiak Sell Down (Dec 2024) (KE Draft 12.12.24)_v2_Final

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SOURCE EQT

FAQ

How many shares of KGS stock did EQT sell in the December 2024 offering?

EQT sold 5,500,000 shares of Kodiak Gas Services (KGS) common stock in the December 2024 offering.

What were the gross proceeds from EQT's KGS stock offering?

The gross proceeds from EQT's offering of KGS stock were $232,925,000.

Which investment banks underwrote the KGS stock offering?

Goldman Sachs & Co. and J.P. Morgan acted as the underwriters for the KGS stock offering.

Did Kodiak Gas Services (KGS) receive any proceeds from EQT's stock offering?

No, Kodiak Gas Services did not sell any shares or receive any proceeds from EQT's stock offering.