EagleRock, a Permian landowner, is aiming for a valuation of $2.6 billion in the US IPO
EagleRock, a land management company in the United States that aims to tap into renewed investor interest in the energy sector, is aiming for a valuation of up to $2.6 Billion in its initial public offering.
The Houston-based firm said that it aimed to raise $346 million through the IPO, by selling 17.3 million shares at a price between $17 to $20 each.
After a brief lull in the first half of the year, signs of easing geopolitical conflict in the 'Middle East' encouraged companies to file for IPOs.
According to Renaissance Capital which offers IPO focused research and ETFs, energy companies tend to go public in 'clusters', driven by similar macroeconomic factors.
EagleRock earns a large portion of its income from fees and royalties collected on land that it controls or owns. It does not drill, so it can focus on earning a fee-based revenue with minimal operating costs.
EagleRock is the land of companies such as Chevron and Devon Energy.
The company controls or owns 236,000 acres in the Permian basin, which is one of?the world's most prolific oil producing regions. It spans West Texas and the southeastern part of New Mexico.
EagleRock said it was looking to broaden its revenue streams by exploring alternative land uses, ?including power generation, data centers and renewables as ?well as carbon-capture-related infrastructure.
Goldman Sachs Barclays J.P. Morgan Piper Sandler Raymond James and Barclays are among the underwriters of the offering.
EagleRock plans to list its shares on NYSE Texas and the New York Stock Exchange under the symbol "EROK."
(source: Reuters)
