Good Friday gave Wall Street a holiday, but seven IPOs got out the door during the four-day week. That was the busiest pace since the week of Sept. 19, 2016, when eight IPOs were priced, according to the U.S. Securities and Exchange Commission (SEC) filings.
Monday, April 17, is Emancipation Day, a legal holiday in the District of Columbia. The holiday marks the abolition of slavery in D.C. In 1862, President Abraham Lincoln signed the Compensated Emancipation Act and freed more than 3,000 slaves in the nation’s capital. This year, the U.S. tax deadline has been moved forward to Tuesday, April 18, because of the timing of this holiday.
Back-to-back holidays marking the end of one week and the start of the next one usually do not produce a rip-roaring IPO calendar. And that formula holds true this time around. This week’s calendar has just one IPO on it: Select Energy Services (WTTR – proposed).
A Water-and-Fracking Play
Select Energy Services is a Gainesville, Texas-based provider of water solutions to the U.S. unconventional oil and gas industry, otherwise known as hydraulic fracturing or “fracking.” For the year ended Dec. 31, 2016, the company reported a net loss of $313.9 million on revenue of $302.4 million, compared with a net loss of $81.9 million on revenue of $535.6 million for the year ended Dec. 31, 2015.
Bankers plan to price 10.6 million shares of Class A common stock of Select Energy Services at $15 to $18 each on Thursday evening, April 20, to trade Friday morning, April 21, 2017, on the New York Stock Exchange.
After the IPO, owners of the Class A common stock will hold about 44.5 percent of the company’s voting power while owners of the Class B common stock will hold about 55.5 percent of the company’s voting power, according to the prospectus.
Something to remember: Fracking IPOs have struggled in the aftermarket this year. Here is what we have year to date:
Note: Jagged Peak’s quiet period ended Feb. 20 and nine investment firms have issued reports, according to available sources. The estimates range from “positive” to “buy” to “overweight” with price targets from $15 to $23; the most recent was $16 on March 23.
Note: Kean Group’s quiet period ended Feb. 13 and seven investment firms have issued reports. The estimates range from “buy” to “overweight” with an average price target of $23.
Note: ProPetro Holding’s quiet period ended April 10 and seven investment firms have issued reports. The estimates range from “buy” to “overweight” with an average price target of $23.
April’s Quiet Finale
This brings us to the week of April 24. Its calendar has one deal. However, that could change when the SEC’s filing window re-opens for business.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinion.