Five Point-backed WaterBridge raises 634 million dollars in US IPO
WaterBridge Infrastructure, a company that manages oilfield water, announced on September 16th that it raised $634 Million in its initial public offering (IPO) in the United States. This is the latest indication of renewed momentum within the listing market.
Houston-based company, Texas, sold 31.7 millions shares at $20 each, the upper end of their marketed range from $17 to $20.00 per share. It was valued at $2.3 billion in the IPO.
WaterBridge is the latest in a string of IPOs. StubHub ticket reseller, Netskope cybersecurity firm, and Pattern e-commerce company are also slated to go public this week. This highlights renewed investor interest for new offerings.
The U.S. market has recovered from its April slump, which was caused by the volatility of the tariff-driven markets. This is due to progress in trade negotiations and expectations for a rate cut in September.
WaterBridge will test investor appetite for midstream water managers, who earn stable cash flows from long-term fee-based contracts even when energy costs fluctuate.
WaterBridge, a water infrastructure firm backed by private equity firm Five Point with operations in the Delaware Basin, is a pure play company. Its main activities are to collect, transport, recycle and handle produced water on behalf of oil exploration and production firms.
WaterBridge and LandBridge are partners in utilizing the under-utilized pore spaces of the Delaware Basin, to meet the growing demand for water handling.
Customers include BPX Energy and Devon Energy as well as EOG Resources, Permian Resource, EOG, and Chevron.
J.P. Morgan & Barclays will be the main underwriters of the offering. WaterBridge is set to begin trading under the symbol WBI on Wednesday on the New York Stock Exchange as well as the NYSE Texas.
(source: Reuters)
