Baker Hughes' drilling equipment company HMH is valued at $815m amid market turmoil
HMH Holding, a provider of drilling equipment, was valued at 815 million dollars?after its shares dropped 5.5% on Wednesday in its Nasdaq début?amid fragile sentiments and persistent geopolitical uncertainties.
Houston-based Akastor, a joint venture between Norway's Akastor and oilfield services firm Baker Hughes, has pushed forward with its long-sought New York IPO despite the Middle East conflict boosting oil prices.
Brent crude futures are up 67% in the last year, but they were down 1.9% on Wednesday.
Lukas Mühlbauer, Research Associate at IPOX, said: "Listing now can be beneficial because investors pay more attention to energy-related?names. However it is also a risk as the Middle East conflict makes markets'more volatile' and new listings are harder to price.
The stock opened at $18.90, which is below the $20 opening price. HMH raised $204,4 million from the sale of 10.5 million shares in the range of $19 to $22 per share.
HMH was formed in 2021 when Baker Hughes and Akastor merged their offshore oil-drilling equipment units. HMH was originally expected to go public in the second half 2024. However, the company has waited until now for the right moment.
"HMH spent the years 2024 and 2025 preparing the company for an IPO when the issuance window wasn't strong. Muehlbauer explained that the current timing reflects a combination of better internal'readiness' and a market background where higher oil prices make 'energy-related stories? more appealing.
HMH offers drilling equipment, aftermarket services and?oil & gas drilling operations onshore and offshore. Hydril, 'VetcoGray', Wirth, and Maritime Hydraulics are among its brands.
Oilfield service firms will continue to face a challenging market until 2025, as delays in?contracts and deferred tendering affect the rig's activity.
HMH is now part of the select group?of publicly traded oilfield service companies including NOV, SLB and others. As of December 31, it had a backlog of contracts worth $329.3 millions. Reporting by Pragyan K. Kalita in Bengaluru and Arasu K. Kannagi Basil; editing by Tasim Z. Zahid
(source: Reuters)
