BUZZ-Flowco surges after 2025's inaugural US IPO priced above range

Updates with debut price

Oilfield services firm Flowco Holdings FLOC.N surges in NYSE debut on Thurs after first notable U.S. IPO of 2025 priced above expectations

FLOC shares open at $29, ~21% above IPO price

Houston, Texas-based co late Weds said it sold 17.8 mln shares at $24, $1 above $21-$23 marketed range, for ~$427 mln raise

Flowco, which achieves valuation of roughly $2.6 bln, plans to use bulk of net IPO proceeds to reduce debt under existing credit agreement

Blackrock BLK.N and American Century Investment Management indicated to buy up to $125 mln of the IPO, or ~30% of the deal, per the SEC prospectus

Buyout firms Global Energy Capital and White Deer Energy will continue to collectively control Flowco post-IPO

JP Morgan, Jefferies, Piper Sandler and Evercore acting as lead bookrunners for the offering

IPO research firm Renaissance Capital said on its website that Flowco is the first sizable listing of 2025, and is also the largest energy listing by deal size since May 2019 (Rattler Midstream; $665 mln)

But that could change soon, as liquefied natural gas (LNG) producer Venture Global seeks more than $2 bln raise in its NYSE IPO slated for next week

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))