Oil & gas industry communication services provider RigNet will raise an additional US$9m from its Nasdaq IPO after the company’s underwriters exercised their over-allotment option.
In total, the underwriters, Deutsche Bank, Jefferies & Co (both joint…
Oil & gas industry communication services provider RigNet will raise an additional US$9m from its Nasdaq IPO after the company’s underwriters exercised their over-allotment option.
In total, the underwriters, Deutsche Bank, Jefferies & Co (both joint book-runners), Oppenheimer & Co and Simmons & Co (both co-managers), bought an additional 750,000 shares at the IPO price of US$12 per share, 500,000 from RigNet and 250,000 from the selling shareholders.
RigNet initially raised US$60m from its debut listing on 20 December, issuing 5 million shares at US$12 per share. Selling shareholders sold 1.66 million of these shares, raising just under US$20m, with the company itself selling the remainder to net US$40m. Overall, the listing represented approximately 39% of the company’s share capital.
The offer price was below the range of US$14 to US$16 per share, although this weak pricing was mirrored by the other US firms making their debut on the Nasdaq in the final week of trading in 2010.
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 following the exercise of the over-allotment these holdings have fallen to 14.4%, 12.9% and 24.9% respectively.
Founded in 2000, RigNet offers managed IP-based communications services to the upstream oil and gas industry. To do so, the company leases capacity from a number of satellite operators in order to offer VSAT services. RigNet saw a rapid rise in revenues between 2006 and 2008, from US$29.2m to US$89.9m, however in 2009, as the downturn took its toll, revenues fell back to US$80.9m.
