Jagged Peak Energy LLC (JAG.N) raised $474 million in an initial public offering (IPO) on Thursday, significantly below the roughly $650 million it was targeting, a source familiar with the situation said.
The downsized offering is likely to disappoint those hoping that energy IPOs will rebound in 2017, as oil prices CLc1 continue to climb off decade-lows hit a year ago, spurred by an agreement by the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers to curb global output.
Denver, Colorado-based Jagged Peak placed 31.6 million shares, fewer than the 38.2 million it anticipated. It priced these shares at $15, below its previously indicated range of $16 to $18 a share, the source said.
The source requested anonymity because the pricing is not yet public. Jagged Peak and its private equity owner Quantum Energy Partners did not immediately respond to requests for comment.