Tag Archives: IPO

Conroe Bank completes IPO

Spirit of Texas Bank, a community bank headquartered in Conroe, TX, has completed its Initial Public Offering (IPO). It raised $42 million by offering 2 million shares (5% more than it originally filed for) at $21, the midpoint of the expected range. It is now listed on the Nasdaq exchange under the symbol STXB. The shares closed their first day of trading $1 higher.

The bank has 15 branches in the Houston, Dallas/Fort Worth and Bryan/College Station metropolitan areas. As of December 31, 2017, the bank had total deposits of $835 million. The bank started in 2008 by acquiring First Bank of Snook in College Station and has made 6 acquisitions since then.

Dean Bass is the Chairman, Founder and CEO of the company. He has 44 years of experience and founded Royal Oaks Bank in 2001 before selling it for $38 million in 2007 to Firsts Bank. Other members of the senior management each have over 35 years of banking experience.

Stephens Inc and Keefe Bruyette Woods are the joint bookrunners on the deal. BDO are the auditors to the company, Jackson Walker the legal advisors.

 

Conroe bank files for IPO

Spirit of Texas Bank, a community bank headquartered in Conroe, TX, has filed to raise up to $46 million in an Initial Public Offering (IPO). It plans to list on the Nasdaq exchange.

The bank has 15 branches in the Houston, Dallas/Fort Worth and Bryan/College Station metropolitan areas. As of December 31, 2017, the bank had total deposits of $835 million. The bank started in 2008 by acquiring First Bank of Snook in College Station and has made 6 acquisitions since then.

Dean Bass is the Chairman, Founder and CEO of the company. He has 44 years of experience and founded Royal Oaks Bank in 2001 before selling it for $38 million in 2007 to Firsts Bank. Other members of the senior management each have over 35 years of banking experience.

Stephens Inc and Keefe Bruyette Woods are the joint bookrunners on the deal. BDO are the auditors to the company, Jackson Walker the legal advisors.

Pricing details were not announced.

SEC filing

 

 

BMC Software considers IPO

According to a report from Reuters, BMC Software is holding conversations with investment banks about an Initial Public Offering (IPO) that could give the company an enterprise value of more than $10 billion.

BMC is based in the Westchase area of Houston and is currently owned by two private equity firms, Bain Capital and Golden Gate Capital who took the company private in 2013 in a $6.9 billion leveraged buyout.

According to Moody’s the business had revenues of $1.8 billion for the year ending 30 September.

BMC hasn’t made any filings with the SEC yet and no timing has yet been determined.

Reuters : BMC explores IPO

Market turmoil causes another Houston IPO postponement

Not surprisingly, on a day when the Dow fell 1,000 points, Ipsco Tubulars decided to postpone its Initial Public Offering (IPO).

The company, based in NW Houston, manufactures drill pipe and is being spun out of Russia’s TMK. It had planned to raise $500 million by offering 23.3 million shares at a price range of $20 to $23.

The postponement follows a similar decision made yesterday by Quintana Energy Services. However another Houston company, Cactus, had better luck and completed its IPO at the top end of the range.

[UPDATE: Late Thursday Quintana decided to push through their IPO at a reduced offer price of $10 per share, much lower than the marketed range of $12-15. They will begin trading on 9 February, using the ticker ‘QES’.]

According to Renaissance Capital, 10 companies (6 US, 4 international) had planned to complete their IPO’s this week. So far, 5 have completed (only Cactus priced at the top end of the range), 4 have postponed and 1 will be decided tomorrow.

https://www.andrewjowett.net/2018/01/14/two-houston-area-companies-file-for-ipos/

Houston IPO update – one launches, one postponed

Mixed results for two of the three Houston-area companies that were planning Initial Public Offerings this week as the market turmoil takes its toll.

Cactus, a manufacturer of onshore wellheads and control equipment, priced its IPO at $19, the top end of its marketed price range of $16 to $19. It also sold slightly more shares than expected (23 million versus 21.4 million). Cactus will have a market capitalization of $1.4 billion when its shares (Ticker WHD) start trading.

Quintana Energy Services, a provider of onshore oilfield services, postponed its IPO on Wednesday. It had planned to raise $125 million.

[UPDATE: Late Thursday Quintana decided to push through their IPO at a reduced offer price of $10 per share, much lower than the marketed range of $12-15. They will begin trading on 9 February, using the ticker ‘QES’.]

No word yet on the fate of the third Houston company that was planning to go public this week (Ipsco Tubulars).

3 Houston-area companies announce terms for their IPOs.

On Monday, 3 Houston-area companies announced terms for their Initial Public Offering.

Quintana Energy Services plans to raise $125 million by offering 9.3 million shares at a price range of $12 to $15. At the midpoint, the company would have a market value of $435 million.

Quintana has its headquarters in downtown Houston and is a private-equity backed provider of onshore oilfield services with 35 locations throughout the US.

The company had revenues of $307 million in the first nine months of 2017 and performs directional drilling services ($107 million), pressure pumping ($104 million), pressure control ($63 million) and wireline services ($33 million). The company had adjusted EBITDA in the first nine months of $22 million.

In 2006 the PE sponsor, Quintana Capital Group, first began acquiring businesses and made a series of acquisitions over the following years. The big acquisition came when they acquired businesses from Archer Well Company in December 2015 for $93 million.

Cactus Inc, a PE-backed manufacturer of onshore wellheads and control equipment, plans to raise $375 million by offering 21.4 million shares at a price range of $16 to $19. At the midpoint, the company would have a market cap of $1.3 billion.

The company has its head office in the Memorial City area of west Houston. It has 13 service centers around the US, one in Australia, and two manufacturing facilities in Louisiana and China.

The company was formed in 2011 by two brothers, Scott and Joel Bender, with the backing of Cadent Energy Partners. The brothers had previously started Ingram Cactus, which was sold to Cameron (since acquired by Schlumberger) in 1996 for $100 million.

For the nine months ended 30 September it had revenues of $236 million. Adjusted EBITDA for the nine months was $77 million (32.6%).

Note that Quintana and Cactus are following FTS International, a Fort Worth-based fracking company that should complete its IPO this week. Since Liberty Oilfield Services, another pressure pumping company (based in Denver) went public at the start of the year its shares are up 34%.

Ipsco Tubulars plans to raise $129 million by offering 7.4 million shares at a price range of $20 to $23. At the midpoint the company would have a market cap of $1.3 billion.

The company is a producer of tubular drill pipe, casing and tubing for onshore exploration and production.  It has its head office in NW Houston.

The company is being spun off from its parent, PAO TMK, a Russian company that has a quote on the London Stock Exchange. The parent company intends to keep a controlling stake, but is selling 15.8 million shares (the company won’t receive any of these proceeds). TMK bought the assets of IPSCO for $1.7 billion through a two-part transaction in 2008 and 2009.

For the nine months ended 30 September, 2017 the company had revenues of $734 million and adjusted EBITDA of $62 million.

 

Houston Oilfield Services company finalizes IPO at the top of the range

Nine Energy Service has priced its initial public offering at $23, having marketed a range of $20-$23 per share. That means gross proceeds will be $161 million and a market capitalization of $536 million.

The company will begin trading on Friday on the New York Stock Exchange under the symbol ‘NINE’. Most of the proceeds will be used to pay off existing debt, though company will keep about $30 million for general corporate purposes.

The company provides well completion and production services. It has its head office in the Greenspoint area and has about 40 locations in the US and Canada. Nine Energy Service is backed by SCF Partners who formed the company in February 2013 when they merged three of their portfolio companies (Northern States Completions, CDK Perforating and Integrated Production Services – Canada). They subsequently acquired four more companies and then merged with Beckman Production Services in February 2017.

Last week, Liberty Oilfield Services, a Denver-based pressure pumping company priced its IPO above its marketed range. Contrast Liberty and Nine Energy with the Oilfield Service IPOs in 2017, where most companies had to price below the range to get their IPO finalized.

Nine-Energy-Service-Inc-Prices-Initial-Public-Offering.html

Two Houston-area companies file for IPOs

Since the new year, there has been a rush of companies filing to go public to take advantage of rising stock prices.

In Houston, two companies filed on Friday. Not surprisingly, given the recent rise in the price of oil, they are both oilfield service companies

The first is Cactus Inc, a PE-backed manufacturer of onshore wellheads and control equipment. It has its head office in the Memorial City area of west Houston. It has 13 service centers around the US, one in Australia, and two manufacturing facilities in Louisiana and China.

The company was formed in 2011 by two brothers, Scott and Joel Bender, with the backing of Cadent Energy Partners. The brothers had previously started Ingram Cactus, which was sold to Cameron (since acquired by Schlumberger) in 1996 for $100 million. After that, they worked for the Wood Group until the pressure control division was acquired by GE in 2011. The CFO of Cactus is Brian Small, who was also the CFO at Wood Group Pressure Control.

For the nine months ended 30 September it had revenues of $236 million. Its revenues are accelerating as it did $96 million in the three months to September. Adjusted EBITDA for the nine months was $77 million (32.6%).

The underwriters are Citigroup, Credit Suisse and Simmonds & Co. PwC are the auditors, Baker Botts are the legal advisers to the company.

No details yet of the size and price of the proposed offering.

Cactus Inc – SEC S-1 filing

The second company to file is Ipsco Tubulars, a producer of tubular drill pipe, casing and tubing for onshore exploration and production. The company has its head office in NW Houston.

It is being spun off from its parent, PAO TMK, a Russian company that has a quote on the London Stock Exchange. The parent company intends to keep a controlling stake. TMK bought the assets of IPSCO for $1.7 billion through a two-part transaction in 2008 and 2009.

For the nine months ended 30 September, 2017 the company had revenues of $734 million and adjusted EBITDA of $62 million.

The CEO of the company is Piotr Galitzine.  He has been Chairman of the Board since 2008 and has held senior positions with Mannesmann and BASF. Not mentioned in the filing is the fact that he is a descendant of Russian czars and his wife is an Austrian princess!

The CFO is Evgeny Makarov. He has been the CFO since August 2013 and prior to that worked in the finance department of TMK in Moscow for many years. Interestingly he is married to Elena Verbinskaya, who will be Ipso’s VP of Accounting Integration and Financial Reporting. She will also maintain her position as Chief Accounting Officer at TMK. Not sure how that’s going to work out!

Merrill Lynch and Morgan Stanley are the lead underwriters. Ernst & Young are the auditors, Latham & Watkins are the legal advisers.

As with Cactus, no details of the size of the offering were disclosed.

Ipsco Tubulars – SEC S-1 filing

Houston Oilfield Services company announces IPO pricing

Nine Energy Services has announced that it expects to price 7 million shares in the range of $20 to $23. At the midpoint they would raise $151 million, giving the company a market capitalization of $501 million.

The company provides well completion and production services. It has its head office in the Greenspoint area and has about 40 locations in the US and Canada. Nine Energy Service is backed by SCF Partners who formed the company in February 2013 when they merged three of their portfolio companies (Northern States Completions, CDK Perforating and Integrated Production Services – Canada). They subsequently acquired four more companies and then merged with Beckman Production Services in February 2017.

The company had revenue of $469 million for the 12 months ended September 2017. The company initially filed for an IPO back in May 2017 but postponed its launch until market conditions improved.

The CEO of the company is Ann Fox, a former Marine who served several tours of duty in Iraq. She is a former Managing Partner of SCF Partners.

The company recently appointed Clinton Roeder as its CFO. Mr Roeder was previously the CFO of Total Safety Solutions and replaced Doug Aron who was CFO between February 2017 and September 2017.

Houston bank finalizes IPO

CBTX, Inc the holding company for Community Bank of Texas, has finalized its initial public offering and has priced it at the top of the range.

The bank priced at $26, after marketing a range of $24-$26, raising $62.4 million in the process and giving it a market capitalization of $619 million. All the funds being raised will be used to support organic growth, acquisitions and for general corporate purposes.

The bank has nearly $3 billion in assets in 34 branches in the greater Houston and Beaumont areas. The bank was founded in 2007 in Beaumont and has made a number of acquisitions, most recently Memorial City Bank in Houston. The company has its head office in Greenway Plaza.

The management team is very experienced and is led by CEO Robert Franklin, who has worked for 36 years in Houston banking. Vice Chairman Pat Parsons has 44 years of banking experience and was the founder of the Bank. CFO Ted Pigott has 35 years of banking experience. He has served as CFO for both privately-held and publicly-traded banking institutions.

The bank begins trading on the Nasdaq on Wednesday with the symbol of CBTX.