ProFrac Holding's Subsidiary Alpine Silica Files Confidentially for U.S. IPO

(Reuters) — Alpine Silica Holding has confidentially filed to go public in the United States, parent company ProFrac Holding Corp. said on Thursday.

ProFrac's move to tap U.S. capital markets for the unit comes against the backdrop of a deal frenzy in the oil rich Permian Basin, which lies between Texas and New Mexico.

Alpine Silica, ProFrac's proppant production segment and wholly owned subsidiary, operates frac sand reserves and produces five different sand products throughout Louisiana and Texas.

Frack sand is mixed in a slurry and forced at high pressure into wells to free oil and gas trapped in rocks.

The company is located in the oil and gas regions around the U.S., including the Haynesville and Eagle Ford shale basins as well as the Permian Basin.

With a record 2023 for oil and energy deals in U.S., some analysts said future deals are unlikely to match the sheer size of Permian shale deals in recent months.

Major deals included $50 billion-plus purchases by Exxon Mobil and Chevron of Pioneer Natural Resources and Hess, respectively.

Alpine Silica is moving ahead with its listing plans at a time when some investors expect the U.S. initial public offering markets to stage a rebound as bets of a soft-landing firm up. Social media firm Reddit, cloud security company Rubrik and software startup ServiceTitan are all expected to go public in 2024.

Founded in 2016, ProFrac provides services and products, including hydraulic fracturing and proppants production, to oil and gas companies that deal with exploration and production (E&P).

Last year, the holding company laid down a variety of options for Alpine Silica including public offering, sale or merger or potential recapitalization.

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