(Reuters) -Oilfield services company Flowco posted a rise in earnings on Friday as it filed paperwork for a U.S. initial public offering, becoming the latest to benefit from a recent uptick in investor interest in newly listed shares.
The U.S. IPO market, which has largely avoided big deals for nearly three years, is experiencing a revival as improving investor sentiment and near-record high stock markets drive renewed activity.
Analysts expect a significant rebound in IPOs next year, driven by pent-up demand and declining economic uncertainty, creating a more favorable environment for companies to go public.
Flowco has not disclosed how many shares it plans to sell or the potential size of its offering, but Reuters reported in September, citing sources, that it could target a valuation of as much as $2 billion.
Oil and gas companies are increasingly pursuing initial public offerings, buoyed by higher crude oil prices over the past two years, which have significantly improved the performance of energy producers.
Service providers such as Flowco also benefit from these price increases, as their fortunes are closely tied to the sector’s growth and profitability.
Flowco’s activities are divided into two segments: production solutions and technologies. Total revenue rose to $349.3 million in the nine months ended September 30, up from $167.9 million a year earlier.
The company’s operating income rose 49% to $82.8 million during the same period.
The Houston, Texas-based company specializes in services that help improve oil and gas recovery from wells. While the timing of the IPO is unclear, Reuters had previously reported that it could happen as early as the first half of 2025.
It plans to trade on the New York Stock Exchange under the ticker symbol “FLOC.”
JP Morgan, Jefferies and Piper Sandler are the lead underwriters of the offering.
