Baker Hughes-backed drilling equipment firm HMH valued at $815 million amid market jitters
By Pragyan Kalita and Arasu Kannagi Basil
April 1 (Reuters) - Drilling equipment provider HMH Holding
The Houston, Texas-based company, a joint venture between oilfield services firm Baker Hughes BKR.O and Norway's Akastor AKAST.OL, pushed ahead with its long-sought New York listing even as the ongoing Middle East conflict buoyed oil prices.
Brent crude futures LCOc1 have soared 67% this year but were down 1.9% on Wednesday.
"Listing right now could help because investors are paying closer attention to energy-linked names, but it also carries a risk because the Middle East conflict has made markets more volatile and can make new listings harder to price," said IPOX Research Associate Lukas Muehlbauer.
The company's stock opened at $18.90, below the $20 offer price. HMH raised $210.4 million by selling 10.5 million shares within the marketed range of $19 to $22 each.
Baker Hughes and Akastor AKAST.OL combined their offshore oil drilling equipment units to create HMH in 2021. HMH's IPO was initially expected in the second half of 2024, but the firm remained on the sidelines until now, waiting for the opportune moment.
"HMH spent 2024 and 2025 getting the company ready for an IPO while the issuance window was still weak. The current timing reflects both better internal readiness and a market backdrop where higher oil prices have made energy-related stories more appealing, even as the wider market remains nervous," Muehlbauer said.
HMH provides drilling equipment and aftermarket services for offshore and onshore oil and gas drilling operations. Its brands include Hydril, VetcoGray, Wirth and Maritime Hydraulics.
Oilfield services firms navigated a challenging market through 2025 as deferred tendering and contract delays continued to affect rig activity.
HMH joins a select group of publicly traded oilfield services companies, including NOV NOV.N and SLB SLB.N. It had a contract backlog of $329.3 million as of December 31.
