Private equity-backed oil and gas producer EP Energy is to price its IPO at between $23 and $27 per share, raising about $1.08bn and valuing the company at around $7bn.
The company will sell 40 million shares, listing on the New York Stock Exchange. Proceeds from the listing will be used to pay down debt and increase its capital expenditure, EP Energy said.
Apollo Global Management acquired the company, along with Riverstone Holdings and other investors, for $7.15bn in May 2012.
The deal was the largest of the year and the second-biggest private equity buy-out of an energy producer in history. In 2013 EP Energy’s owners gathered a $200m dividend following the sale of the company’s Brazilian operations.
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