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Fracking companies supplier ProFrac (PFHC) mentioned that two of its largest shareholders might purchase almost 30% of the shares being provided in its proposed $360M preliminary public providing.
ProFrac mentioned in a submitting Wednesday that present shareholders THRC Holdings and the Farris and Jo Ann Wilks 2022 Household Belief have indicated they might purchase an mixture of as much as $117M or 5.2M of the Class A shares being provided, primarily based on the midpoint vary acknowledged within the firm’s prospectus, on the IPO worth.
The fracking firm mentioned the purchases would cut back the variety of shares out there on the market to most people. ProFac added that it assumes THRC will buy as much as 4.2M shares and the Wilks 2022 Household Belief will purchase as much as round 978K shares.
ProFrac plans to supply 16M shares priced between $21 and $24 per share, which might increase roughly $360M if priced on the midpoint of the vary. Underwriters shall be given a 30-day choice to purchase as much as 2.4M further shares on the public worth.
If the Wilks 2022 Household Belief and THRC Holdings buy as much as $117M or 5.2M Class A shares, the Wilks household will personal 88.5% of ProFrac’s voting inventory. If the underwriter’s choice is exercised in full, they may personal 87% of the voting inventory, ProFrac mentioned.
Based mostly in Texas, ProFrac offers hydraulic fracturing companies to grease and gasoline firms engaged in exploration and manufacturing.
ProFrac was based by Farris and Dan Wilks. Farris’s son, Ladd Wilks, presently serves as chief government of the corporate, whereas Dan’s son, Matthew Wilks, serves as government chairman. THRC is affiliated with Dan Wilks.
The corporate expects the IPO to generate web proceeds of round $335M, most of which it intends to make use of to pay down debt.
ProFrac expects to checklist its shares on Nasdaq underneath the image PFHC. J.P. Morgan, Piper Sandler and Morgan Stanley are performing as lead bookrunners on the deal.
For extra on ProFrac, try SA contributor Donovan Jones’s “ProFrac Holding Targets $360M IPO”.
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