The upcoming Kodiak Gas initial public offering (IPO) may prove the most hotly anticipated IPO in recent memory. What do you need to know about the Kodiak Gas IPO?
Well, after months of speculation, Kodiak Gas has set the terms for its June 29 IPO date. Indeed, the largest privately owned contract gas compression company in the U.S. is looking to reach a valuation between $1.42 billion and $1.65 billion. It will be listed on the New York Stock Exchange with the “KGS” ticker. Kodiak Gas is pursuing an initial issuance of 16 million shares, priced between $19 per share and $22 per share.
Though, as is common with high-profile IPOs lately, the estimated price per share is likely purposely on the lower side to allow investors to organically raise its share price at the time of the launch, as has been the case with many high-profile IPOs in recent memory.
Kodiak Gas IPO Looms Large Ahead of IPO Frenzy
Make no mistake, a potential valuation north of $1.6 billion would make Kodiak Gas one of the biggest public debuts in recent memory.
That said, it wouldn’t be alone in that. Indeed, following Kodiak Gas’ June 29 IPO, several other major companies are set to go public in the days and weeks following. Savers Value Village and Fidelis Insurance are both expected to launch their respective IPOs on June 29.
However, Kodiak Gas represents one of the leaders of the upcoming IPO roster, and for a good reason. The company is uniquely positioned in the compression industry.
“We are a leader in large horsepower compression, with approximately 81% of our approximately 3.2 million hp fleet comprised of compression units larger than 1,000 hp,” Kodiak Management said in an S-1 filing last week. “Due to lower initial reservoir pressures, production from unconventional resources, such as the Permian Basin and Eagle Ford Shale, requires significantly more compression horsepower than from conventional production, which supports our large horsepower strategy,”
According to its current conditions, Kodiak Gas’s IPO should raise upwards of $300 million.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
