Local oilfield service company expects to raise approximately $600 million in IPO.
On Friday Frank's International, the 75-year-old company specializing in tubular fabrication and installation services to the oil and gas industry, will makes it stock market debut.
Photo by Robin May
Frank's International President and CEO Keith Mosing and his father, Donald, who was honored as LAGCOE Looey in 1997
Frank's International CFO Mark Margavio confirms to ABiz that 30 million shares of the stock will be priced between $19 and $21 Thursday and begin trading Friday. That means approximately $600,000 is expected to be raised, with the Mosing family retaining 85 percent ownership in the company - figures that put the value of the company at approximately $4 billion on the public market.
The company's stock will be listed on the New York Stock Exchange under the symbol "FI."
Frank's International, whose domestic headquarters are in Lafayette, ranked No. 1 on ABiz's list of the Top 50 Privately Held Companies in Acadiana based on 2012 revenues. Last year, Frank's generated more than $1 billion in revenues, and Securities and Exchange Commission filings show that it earned $351 million in 2012, more than double its $171 million in profits a year earlier.
A recent SEC disclosure noted a change in position for the company's top executive in Lafayette, though it does not appear to have had any effect on the planned offering:
In the course of preparing for this offering, we became aware that Robert R. Gilbert, who served as our Executive Vice President and Chief Operating Officer-U.S. Services and Pipe and Products, misstated his educational credentials. Specifically, though he completed approximately 30 hours of coursework, Mr. Gilbert did not actually obtain a Masters of Business Administration degree. As a result of this discovery, Mr. Gilbert resigned from his position and has agreed to accept a non-executive role with the company and will no longer serve as an executive officer. Accordingly, our management and compensation disclosures reflect that Mr. Gilbert is no longer one of our executive officers. See "Management," "Compensation Discussion and Analysis" and "Executive Compensation." We do not believe that Mr. Gilbert's misstatement about his educational credentials has any bearing on the accuracy of our disclosure or the integrity of our operations and management.
In addition, Mr. Gilbert will not enter into a new employment agreement and instead will continue under his existing employment agreement with the Company.
Money raised from the IPO will be used to pay off debt and for expansion. Read more about Frank's success and how President and CEO Keith Mosing says the IPO will help expand the company's Lafayette operations here.