After setting the price near the low end of its marketing range, RSP Permian Inc and its owners were able to gather $390 million in its initial public offering, Bloomberg reported. An independent oil and natural gas company, RSP Permian buys, explores and develops properties for oil and natural gas reserves. It is backed by private equity fund Natural Gas Partners LLC or NGP.
Terms of the deal obtained by Bloomberg News showed that the company and its shareholders were able to sell 20 million shares at a price of $19.50 each. They shares had been offered at $19 to $21 each, the report said. RSP Permian's shares are expected to be traded tomorrow under the ticker RSPP in the New York Stock Exchange.
Based in Dallas, RSP Permian explores the Permian Basin in Texas. At its given IPO price, its market value is pegged at $1.41 billion. The company intends to use the proceeds to pay back debt and give cash payments to its current investors as well as employees, the report said.
According to RTT News, the underwriters for the deal were given a 30-day option to purchase up to 3 million shares from the shareholders selling stock for as long as the underwriters will be able to sell over 20 million shares of the common stock of the company. The closing date for the offering is most likely on January 23, 2014, the report said.
Joint book running managers for the offering were Barclays, J.P. Morgan, Tudor, Pickering, Holt & Co., Raymond James, RBC Capital Markets and UBS Investment Bank, RTT News reported.
Information from its website showed that NGP was established in 1998. It manages funds of around $10.5 billion, deploying capital in oil and gas production, oil field service and power firms. After selling shares in the offering, filings showed that NGP has reduced its stake in RSP Permian to around 26% from 45%, Bloomberg reported.
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