Chesapeake Oilfield Services, a Chesapeake-owned oil and gas service provider with one of the largest rig fleets in the US, withdrew its plans for an initial public offering on Friday. The company originally filed for $863 million IPO in April 2012. It did not cite its reason for withdrawing the IPO.
The spinoff operated through five business segments, including drilling, hydraulic fracturing, oilfield rentals, oilfield trucking and custom manufacturing. When the company filed in 2012, it operated 111 land drilling rigs, the fourth largest active rig fleet in the US at the time. Independence Contract Drilling ( ICD ), a contract land drilling rig operator, went public in August and has since fallen about 30% after pricing below the range.
Chesapeake Energy's ( CHK ) stock has also come under pressure recently. It fell about 40% between mid-June and mid-October, but partially recovered this week.
The Oklahoma City, OK-based company was formed in 2011 and booked $1.3 billion in sales for the 12 months ended December 31, 2011. It had originally planned to list on the NYSE under the symbol COS. Goldman Sachs and BofA Merrill Lynch were set to be the joint bookrunners on the deal.
The article Rig-or mortis: Chesapeake Oilfield Services withdraws $863 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.