(Reuters) -Oilfield services provider Flowco showed a surge in revenue as it filed paperwork for a U.S. initial public offering on Friday, becoming the latest to capitalize on a recent revival in investor appetite for the newly minted stocks. quoted.
The U.S. IPO market, which had largely avoided big deals for nearly three years, is experiencing a revival as improving investor sentiment and near-record stock markets drive renewed activity.
Analysts anticipate a significant resurgence in stock market IPOs next year, driven by pent-up demand and easing economic uncertainty, creating a more favorable environment for companies to go public.
Flowco did not disclose the number of shares it intends to sell or the potential size of its offering, but Reuters reported in September, citing sources, that it could seek a valuation of up to $2 billion.
Oil and gas companies are increasingly seeking stock market IPOs, driven by rising crude oil prices over the past two years, which have significantly boosted the performance of energy producers.
Service providers like Flowco are also benefiting from these price increases, as their fortunes are closely linked to the growth and profitability of the sector.
Flowco's business is divided into two segments: solutions and production technologies. Total revenue rose to $349.3 million in the nine months ended Sept. 30, up from $167.9 million a year earlier.
The company's operating income increased 49% to $82.8 million during the same period.
The Houston, Texas-based firm specializes in services that help improve the rate of oil and gas extraction from wells. While the timing of the IPO is unclear, Reuters had previously reported that it could be as early as the first half of 2025.
It plans to list on the New York Stock Exchange under the symbol 'FLOC'.
JP Morgan, Jefferies and Piper Sandler are the lead underwriters for the offering.
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