Oil-Field Services Company Keane Group Prices Upsized IPO at High End of Range
January 19 2017 - 8:20PM
Dow Jones News
By Josh Beckerman
Oil-field services company Keane Group Inc., which increased the
size of its initial public offering at least twice, said the IPO
priced at the high end of its estimated range Thursday.
The Houston provider of hydraulic fracturing and other well
completion services said the offering of 26.76 million shares
priced at $19 each.
Keane is selling 15.7 million of the shares, while the rest are
being sold by an entity that includes private-equity firm Cerberus
Capital Management LP. Cerberus bought a majority of Keane in
2011.
In November, Keane filed confidential IPO paperwork, and the
next month it revealed its plans to go public.
Regulatory filings this month mentioned an estimated price of
$17 to $19, with the size projected at 16.7 million shares and then
22.3 million shares.
A severe energy downturn in recent years has led to net losses
and job cuts at oil-field services providers like Halliburton Co.
and Baker Hughes Inc.
For the nine months ended Sept. 30, Keane's revenue fell to
$269.5 million from $312.2 million in the comparable 2015 period.
Net loss widened to $148.6 million from $38.9 million.
In December, Keane said it believes it "well positioned to
capitalize efficiently on an industry recovery." The company
pointed to its active role in North American shale areas and said
its strong balance sheet will help it expand.
Keane will trade on the New York Stock Exchange under the symbol
FRAC. The company will use the proceeds to repay debt.
Citigroup, Morgan Stanley, BofA Merrill Lynch, and J.P. Morgan
are joint book-running managers.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
January 19, 2017 20:05 ET (01:05 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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