Stock Market Watch

Athlon Shares Climb Nearly 38% on First Trading Day (ATHL)

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Shares of Athlon Energy Inc. (NYSE: ATHL) soared almost 38% on the first day of trading at the New York stock exchange.

The initial offering of 15,789,474 shares was priced at priced at $20 per share, which was on the higher end of the expected IPO range of $18-$20. On Friday the stock closed at $27.56.

The Fort Worth, Texas-based company, which focuses on acquisitions, development and commercialization of unconventional oil and liquid natural gas reserves found in the Permian Basin, successfully raised $315.8 million through an Initial Public Offer (IPO) on August 1.

The underwriters; that is, those banks that were responsible to raise the finance, could buy another 2.4 million shares, if the demand for more cash arises for the company.

Athlon said that it intends to use these proceeds partly towards the debt repayment, and remainder for drilling program, for buying new holdings units from Athlon Holdings LP and some other usual corporate purposes.

The Company filed its plans to raise $345 million through an IPO in June.

For the quarter that ended March 31, the oil and gas company reported a profit of $10.9 million compared to a loss in the year-earlier quarter while revenue jumped 65% to $54.7 million.

While Citigroup Global Markets Inc and Goldman Sachs & Co acted as the joint underwriters for the IPO; Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and Wells Fargo Securities, LLC. , all served as underwriting managers.

 

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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