Liberty Oilfield Services Inc. (ticker: LBRT) announced the pricing of an upsized initial public offering of 12,731,092 shares of its Class A common stock at $17.00 per share early on Jan. 12. The shares opened trading on the NYSE today at $21.20. By midday shares of Liberty were trading at almost a 28% premium.
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In addition, Liberty and the selling shareholder granted the underwriters a 30-day option to purchase up to an additional 1,909,663 shares of Liberty’s Class A common stock at the IPO price, less underwriting discounts and commissions.
Liberty expects to receive approximately $194.5 million of net proceeds from the offering, or $220.4 million if the underwriters exercise their option to purchase additional shares in full. Liberty intends to contribute the net proceeds of the offering it receives to Liberty Oilfield Services New HoldCo LLC (Liberty LLC), its subsidiary, in exchange for limited liability company units in Liberty LLC (Liberty LLC Units).
Liberty LLC intends to use such net proceeds to repay borrowings incurred under Liberty’s credit facility, to repay borrowings under Liberty’s term loan and for general corporate purposes, including funding a portion of Liberty’s 2018 and other future capital expenditures. If the underwriters exercise their option to purchase additional shares, Liberty intends to use the proceeds it receives to redeem shares of Class A common stock or Liberty LLC Units from certain existing holders.
Morgan Stanley, Goldman Sachs & Co. LLC, Wells Fargo Securities, Citigroup, J.P. Morgan and Evercore ISI are acting as joint book-running managers for the offering.
