Categorized | IPO

Forum Energy Technologies IPO Details and Outlook


Share Button

Details Regarding the Forum Energy Technologies IPO

Forum Energy Technologies IPOHouston, Texas based Forum Energy Technologies, Inc. sold shares to the public on April 16, 2012, completing the Forum Energy Technologies IPO by selling approximately 21.8 million shares of common stock at $20.00 per share.  Forum Energy Technologies IPO shares started trading on the New York Stock Exchange (NYSE) during April 17, 2012 via symbol “FET”.

The Forum Energy Technologies portion of the Forum Energy Technologies IPO shares was approximately 13.9 million shares, which raised approximately $258 million for the company, after expenses.  Forum Energy Technologies intends to use the net proceeds from the Forum Energy Technologies IPO to repay debt associated with a revolving credit facility.  The remaining 7.9 million shares of stock sold during the Forum Energy Technologies IPO was sold by investors who obtained shares of Forum Energy Technologies’ stock prior to the IPO, while it was privately held.

Tudor, Pickering, Holt & Co was the lead underwriter for the Forum Energy Technologies IPO.  The Forum Energy Technologies IPO was assisted by major investment houses, such as:  JP Morgan, Credit Suisse, Bank of America Merrill Lynch, Citigroup, and Deutsche Bank Securities.

Upon completion of the Forum Energy Technologies IPO, Forum Energy Technologies has a market capitalization of just under $2 Billion, which is within the small-cap realm of companies, but not far from the greater than $2 Billion threshold for mid-cap companies.

Why The Forum Energy Technologies IPO May Be A Good Investment

The Forum Energy Technologies IPO offers an investment in the growing oil and natural gas exploration and production businesses.  Forum Energy Technologies is in the business of designing, manufacturing, and providing manufactured technologies and applied products to the oil and natural gas drilling and distribution industries.  The company has two major divisions:  the Drilling and Subsea division and the Production and Infrastructure division.

There are two primary reasons why the Forum Energy Technologies IPO may be a good investment.  First, due to recent technological developments in natural gas and oil drilling, dramatic increases in drilling within unconventional shale and tight sand formations is increasing the demand for drilling services and equipment from companies such as Forum Energy Technologies.  Secondly, due to the rush to use new technologies to product natural gas and oil from unconventional shale and tight sand formations, the natural gas and oil exploration and production industries are increasing capital spending in the oil and gas industry at a compounded annual growth rate of 13%.

Of course, investing in an IPO such as the Forum Energy Technologies IPO does carry risks that must be taken under consideration.  The risks associated with an investment in the Forum Energy Technologies IPO include, but are not limited to, changes in the price of crude oil and natural gas that could lead to a reduction in demand for the company’s services and competition from larger suppliers of similar products and services.

Stay up to date on Forum Energy Technologies IPO by getting on our FREE eMail list!

This post was written by:

- who has written 536 posts on StockRockandRoll.


Contact the author

Comments are closed.


© 2020 MJ Capital, LLC | All rights reserved