Denver-based oilfield service company Liberty Oilfield Services closed its first day of trading at $21.75 per share, up from its $17 opening on the New York Stock Exchange. The opening which priced above the expected range of $14 to $16, might be good news for investors in the petroleum industry which has dealt with falling oil prices in the past few years.
Liberty Oilfield Services which originally planned an IPO for 2017, pulled back the offering because of low oil prices at the time. This time around, however, the Denver-based company raked in roughly $216 million. Goldman Sachs, Morgan Stanley and Wells Fargo Securities acted as the lead underwriters on this offering while Citigroup Global Markets Inc. and J.P. Morgan Securities also contributed as underwriters.
Liberty Oilfield’s chairman and CEO, Chris Wright, spoke with energy industry publisher Hart Energy. He explained his reasoning for pulling out of the initial IPO last May.
“The market wasn’t good and we didn’t need to do it,” Wright said. “We just figured we’d wait until the market was more reasonable, and the market is.”
“Last year was a good year for Liberty and strong oilfield service companies, but it wasn’t a good year for investors in oilfield services,” he said. “This year, I think the business will continue to be good.”