EagleRock Land LLC priced its initial public offering at $18.50 a share, seeking to raise nearly $320 million for the Permian Basin land-management company as it prepares to trade on the New York Stock Exchange.
The Houston-based company offered 17.3 million Class A shares, according to a statement Tuesday, after marketing them for $17.00 to $20.00 each. At the IPO price, EagleRock commands a market capitalization of approximately $2.41 billion. The shares are expected to begin trading Wednesday on the New York Stock Exchange under the ticker symbol “EROK.”
The offering is expected to close on May 15, subject to customary closing conditions. EagleRock expects to receive net proceeds of about $286.6 million, or $331.3 million if the underwriters fully exercise their option to purchase an additional 2.595 million shares. The use of proceeds was not specified in the filing.
The listing provides investors a new vehicle to gain exposure to the prolific Permian Basin, not through direct oil and gas production, but via land royalties and infrastructure access. EagleRock owns or controls approximately 236,000 acres in the Delaware and Midland sub-basins, which are vital for energy development and related infrastructure needs.
Goldman Sachs & Co. LLC, Barclays, and J.P. Morgan are acting as lead book-running managers for the offering. Piper Sandler and Raymond James are also book-runners, while Pickering Energy Partners, Stephens Inc. and Texas Capital Securities are co-managers.
This article is for informational purposes only and does not constitute investment advice.
