(Reuters) -Oilfield services provider Flowco showed a surge in revenue when it filed paperwork for a U.S. initial public offering on Friday, becoming the latest to capitalize on a recent revival in investor appetite for newly listed stocks.
The U.S. IPO market, which had largely avoided large deals for nearly three years, is experiencing a revival as improving investor sentiment and near-record-high equity markets fuel renewed activity.
Analysts anticipate a significant resurgence in stock market flotations next year, driven by pent-up demand and diminishing economic uncertainty, creating a more favorable environment for companies to go public.
Flowco did not reveal the number of shares it intends to sell or the potential size of its offering, but Reuters reported in September, citing sources, it could seek a valuation of as much as $2 billion.
Oil and gas companies are increasingly pursuing stock market launches, buoyed by higher crude prices over the past two years which have significantly boosted the performance of energy producers.
Service providers such as Flowco are also benefiting from these price surges, as their fortunes are closely tied to the sector's growth and profitability.
Flowco's business is divided into two segments - production solutions and natural gas technologies. It saw total revenue surge to $349.3 million in the nine months ended Sept. 30, versus $167.9 million a year earlier.
The company's income from operations jumped 49% to $82.8 million over the same period.
The Houston, Texas-based firm specializes in services that help improve the rate of oil and gas extraction from wells. While the timing of the IPO is unclear, Reuters had previously reported it could be as early as the first half of 2025.
It plans to trade on the New York Stock Exchange under the ticker symbol 'FLOC'.
J.P. Morgan, Jefferies and Piper Sandler are the lead underwriters of the offering.