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Diamondback Energy sets IPO price range at $17-$19/share
Oct 2 (Reuters) - Oil and natural gas company Diamondback Energy Inc said it expected to sell 12.5 million shares for between $17 and $19 per share in its initial public offering.
At the mid-point of the expected price range, the IPO will raise $225 million. Diamondback expects to get $208.5 million after deducting underwriting commissions and offering costs.
Diamondback, backed by Gulfport Energy Corp and DB Energy Holdings LLC, in February filed for an IPO of up to $50 million. Credit Suisse is the lead underwriter to the offering.
In an amended filing with the U.S. Securities and Exchange Commission on Tuesday, the company said it added nine underwriters, including Raymond James, Wells Fargo Securities and Tudor, Pickering, Holt & Co.
The company plans to use the proceeds from the offering for repayment of debt, exploration and development activities and general corporate purposes.
It intends to list its common stock on the Nasdaq under the symbol "FANG".
Diamondback said Wexford Capital LP, the equity sponsor to the company, indicated that one or more of its affiliates may purchase up to $30 million worth of shares in the offering at the same price as the price to the public. Wexford Capital may own 41.9 percent of the common stock on the completion of the offering.
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