Atlas Energy Raises $324 Million in Year’s Second-Biggest US IPO

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Atlas Energy Solutions Inc. raised $324 million in an initial public offering, pricing its shares below a marketed range for what was still the second-biggest US listing of 2023.

The oilfield services company sold 18 million shares Wednesday for $18 each, according to a statement. It had earlier marketed them for $20 to $23.

At the IPO price, the company has a market value of $1.8 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.

The IPO is the second-biggest on a US exchange this year, topped only by the upsized $734 million listing last month by solar power equipment maker Nextracker Inc. That listing is one of the few bright spots in what has been the slowest start to a year since 2016, according to data compiled by Bloomberg.

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Austin-based Atlas operates primarily in the Permian Basin of West Texas and New Mexico, providing proppant, sand used in fracking to keep the underground fractures from closing. The predecessor of the company had net income of $217 million on revenue of $483 million last year, compared with net income of $4.3 million on revenue of $172 million a year earlier, according to its filings.

Executive Chairman and Chief Executive Officer Ben “Bud” Brigham, who founded Atlas in 2017, will continue to control it through almost 80% of the shareholding voting power after the IPO. Atlas is the third company Brigham has taken public, starting with Brigham Exploration Co., which he founded in 1990.

The Atlas offering is being led by Goldman Sachs Group Inc., Bank of America Corp. and Piper Sandler Cos. The company plans for its shares to begin trading Thursday on the New York Stock Exchange under the symbol AESI.