On Friday, energy company C&J Energy Services began trading on the NYSE under the ticker symbol “CJES”.
The initial public offering on Thursday was above the projected range of $25 to $28, trading at $29.
And on Friday, the shares opened on the market at $30 per share.
A total of 11.5 million shares were available in Friday’s trading.
Of those, 4.3 million belonged to C&J, and the other 7.2 million are being sold by current owners.
C&J Energy Services offers hydraulic fracturing services to oil and gas exploration companies, receiving 80% of its total revenue from these services.
Its main customers include EOG Resources Inc (NYSE: EOG), Anadarko Petroleum (NYSE: APC), and EXCO Resources Inc (NYSE: XCO), the Wall Street Journal reports.
Hydraulic fracturing is a process that is used increasingly more as shale gas exploration expands within the U.S.
It also has been used recently in conventional wells in order to obtain more oil and gas, according to the Wall Street Journal.
C&J Energy is feeling this boom in hydraulic fracturing, or fracking, as it is commonly known.
And they have already contracted five fleets, in contracts extending from mid-2012 to mid-2014, with a sixth fleet expected this year, reports the Wall Street Journal.
The equipment is supplied by Total E&S Inc, which C&J acquired this year, according to the report.
The IPO was managed by Goldman Sachs Group Inc (NYSE: GS), JPMorgan Chase & Co (NYSE: JPM), and Citigroup Inc (NYSE: C).
According to Reuters, the IPO raised $333.5 million.
On Friday, C&J traded in a range of $30 to $32.16 per share.
That’s all for now,
Brianna
