Nine Energy Announces Potential Pricing for IPO

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Nine Energy Service has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 7 million shares in the range of $20 to $23, with an overallotment option for an additional 1.05 million shares. At the maximum price, the entire offering is valued up to $185.15 million. The company intends to list its shares on the New York Stock Exchange under the symbol NINE.

The underwriters for the offering are JPMorgan, Goldman Sachs, Wells Fargo, Merrill Lynch, Credit Suisse, Raymond James, Simmons, Tudor Pickering Holt, HSBC, Scotia Howard Well and UBS Investment Bank.

This is a leading North American onshore completion and production services provider that targets unconventional oil and gas resource development. The company partners with its exploration and production customers across all major onshore basins in both the United States and Canada to design and deploy downhole solutions and technology to prepare horizontal, multistage wells for production.

Nine Energy focuses on providing its customers with cost-effective and comprehensive completion solutions designed to maximize their production levels and operating efficiencies. Management believes this success is a product of its culture, which is driven by an intense focus on performance and wellsite execution, as well as the firm’s commitment to forward-leaning technologies that aid it in the development of smarter, customized applications that drive efficiencies.

The company provides comprehensive completion solutions across a diverse set of well types, including on the most complex, technically demanding unconventional wells. Modern, high-intensity completion techniques are a more effective way for customers to maximize resource extraction from horizontal oil and gas wells.

Nine Energy intends to use the net proceeds from this offering to repay its indebtedness, with the remainder going to pay for working capital and general corporate purposes, which may include the acquisition of additional equipment and complementary businesses that enhance its existing service offerings, broaden its service offerings or expand its customer relationships.

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