Energy, Keane Group, kicks off the 2017 IPO year

We have heard the predictions, projections and year-ahead-analysis: now let’s see some deals.

The first IPO of 2017 will be Keane Group (NYSE: FRAC), a pure-play provider of integrated well completion services in the U.S., with a focus on complex, technically demanding completion solutions. $FRAC added terms on Tuesday and set a January 20 debut on the NYSE.

The Houston based company has many large and small competitors throughout their various lines of business. But the main line of business, the hydraulic fracturing and wireline services, compete with larger companies like Halliburton Company (NYSE: HAL), Schlumberger (NYSE: SLB) and Baker Hughes (NYSE: BHI).

The Energy sector, as a whole, is up around 7% in the last three months and is about 5% off of 52-week highs.

There were four energy-releated IPOs in the 4Q 2016 and three of the four experienced some sort of price-sensitivity and/or weak demand.

WildHorse Resource Development and Smart Sand priced $4.00  below its original range. Mammoth Energy Services, which is currently trading 12% above the offering price, stung IPO investors with a -8.93% return at first trade.

If this data tells you anything, it tells you that the market is weary about this sector in the preceding year. Are there buyers at the right price? Absolutely.

But, are they the right buyers?

What is the true demand of the deal? How does underwriter history play into the picture? How do the financials look in comparison to its peers?

IPO Boutique is busy providing comprehensive research on this deal and all of the 2017 deals on the way.

---

---

Want to have true color about the deal? Are the big players in? When are the books closing? Can I make money on this deal?

We have those answers…and so do our subscribers. Inquire here to be ahead of the market. Our track record takes the guessing game out of the operation.