Oil & gas industry communication services provider RigNet is preparing for an initial public offering on the NASDAQ stock exchange as its existing shareholders seek to sell down part of their stakes.
The company is looking to issue five million shares…
Oil & gas industry communication services provider RigNet is preparing for an initial public offering on the NASDAQ stock exchange as its existing shareholders seek to sell down part of their stakes.
The company is looking to issue five million shares for between US$14 and US$16 per share. RigNet will be selling 3,333,334 shares while some of its shareholders will be divesting 1,666,666 shares. RigNet has granted the underwriters the right to purchase up to 500,000 additional shares of common stock to cover over-allotments, while selling stockholders have granted underwriters a green-shoe of up to 250,000 additional shares.
Overall, the listing represents approximately 39% of the company’s share capital and may raise as much as US$92m. The company will not receive any of the proceeds from the sale by shareholders.
RigNet’s main shareholders include private equity firms The Altira Group, Cubera Private Equity, and Sanders Morris Harris Private Equity Group. Altira owned 24.5%, Sanders Morris 22.5% and Cubera 39% of RigNet prior to the listing and if the over allotment is fully exercised then these holdings will fall to 14.4%, 12.9% and 24.9% respectively.
The offering is being arranged and underwritten by Deutsche Bank Securities, Jefferies & Co, Oppenheimer & Co, and Simmons & Co.
In an SEC filing, RigNet explained that US$400,000 of the proceeds will be used to pay an IPO success bonus to some of its key employees. The remaining will be used for working capital and other general corporate purposes, including the purchase of other businesses, products or technologies.
But the company specified that it has not entered into any agreement for a specific deal yet.
The company, which uses satellite technology to deliver its services, saw its revenues increase from US$29.2m in 2006 to US$89.9m in 2008. In 2009, they dropped to US$80.9m, amid the economic downturn, according to the company.
The date for the start of the IPO has not been disclosed.
