Rice Energy Launches IPO, Hopes to Raise $840M

MDN told you last month that Marcellus and Utica Shale driller Rice Energy would soon launch an initial public offering (IPO) and start to trade publicly listed stocks (see Impending Rice Energy IPO Creating a Buzz). Rice Energy launched their IPO yesterday. Previous chatter was that the company would receive a valuation of $2.5 billion. That’s not how much the stock offering would generate–but the overall value the market would give to the company (market capitalization, or “market cap”).

Rice, in a statement issued yesterday (see below), announced they have now floated 40 million shares of common stock and hope to get $19-$21 per share (30 million of that for the company, 10 million for an unnamed “selling stockholder”). If that happens, the company and the selling stockholder together will receive $840 million. For comparison, a larger Marcellus/Utica driller, Antero Resources, went public last October and sold over 35 million shares with their IPO and raked in $1.57 billion ($44 per share)! The Antero IPO valued the company at $11 billion. Antero’s IPO did much better than they hoped. Will Rice’s?…

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