ProPetro Holding Corp (NYSE:PUMP) revealed plans to conduct an underwritten public offering of 12.5 million shares of its common stock, a move that accompanied a 4.7% fall in the companys shares during after-hours trading on Monday. The company also notified investors that the underwriters will have a 30-day option to buy up to an additional 1.875 million shares.
The oilfield services firm said the net proceeds from the offering will be allocated to general corporate purposes. Among those purposes, ProPetro specifically cited funding growth capital to acquire additional power generation equipment. The company did not provide details on the pricing of the share sale in its announcement.
Goldman Sachs & Co. LLC is serving as the lead book-running manager for the transaction. ProPetro noted that the offering is subject to market conditions and other customary closing conditions. The filing for the sale was made through an effective shelf registration statement previously submitted to the Securities and Exchange Commission.
The proposed issuance would increase the number of outstanding shares, a change that could dilute the ownership percentage of existing shareholders. Management framed the capital raise as a means to support the companys expansion plans, identifying additional power generation equipment as a target for growth-related expenditures funded by the proceeds.
ProPetro provides hydraulic fracturing and related complementary services to upstream oil and gas companies operating in North American unconventional oil and natural gas resources. The companys customer base and operations are concentrated in firms engaged in those upstream activities.
The offering remains contingent on prevailing market conditions and the completion of customary underwriting steps. No timetable for pricing or closing was provided in the announcement, and the company did not offer further financial details tied to the anticipated proceeds.
Clear summary
ProPetro is pursuing an underwritten public offering of 12.5 million common shares, with an underwriter option for an additional 1.875 million shares. Goldman Sachs & Co. LLC is the lead book-running manager. The proceeds are intended for general corporate needs, including capital to expand the companys power generation equipment. The announcement coincided with a 4.7% drop in the stock in after-hours trading.