Cactus Inc (NYSE: WHD) reported a 10-million share public offering of common stock.
The Houston-based company said that, in addition, it intends to grant the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock.
Cactus intends to contribute the net proceeds of the Offering to its operating company subsidiary, Cactus Wellhead, LLC, in exchange for common units representing limited liability company interests in Cactus LLC. Cactus will cause Cactus LLC to use the net proceeds to redeem CW Units from certain of the other owners of Cactus LLC.
Citigroup (NYSE: C) and Credit Suisse (NYSE: CS), the lead book-running managers in Cactus’ initial public offering (“IPO”), have agreed to waive the IPO lock-up restrictions to the extent necessary to permit certain officers and employees of Cactus to participate in the redemption. The waiver will take effect on Wednesday.
Citigroup and Credit Suisse are acting as joint book-running managers for the Offering.
Cactus designs, manufactures, sells and rents a range of highly engineered wellhead and pressure control equipment. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion (including fracturing) and production phases of its customers’ wells.
In addition, it provides field services for all its products and rental items to assist with the installation, maintenance and handling of the wellhead and pressure control equipment.
Shares in the company moved upward 66 cents, or 1.9%, to $36.26
