Preferred Sands Files for IPO

By Chris Lange Updated Jan 12, 9:12AM EST · Published Aug 11, 9:55AM EDT

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Preferred Sands Files for IPO — © Thinkstock

Preferred Sands has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol PSND.

The underwriters for the offering are Credit Suisse, KKR and Morgan Stanley.

This company provides sand-based proppant solutions to the oil and gas industry through its ownership and operation of a portfolio of geographically diversified mines and processing and coating plants. Its products are sold to both oilfield service providers and oil and gas exploration and production (E&P) companies operating in some of the most active basins in North America.

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Preferred Sands is focused on the development and operation of sand facilities located close to or within basins where customers operate and consume its products. E&P companies are increasingly favoring sands produced at regional facilities, given their lower delivered cost versus Northern White sands, which are produced primarily in Wisconsin and Illinois.

The firm believes its regional sand facilities provide it with a significant competitive advantage by allowing it to avoid or reduce certain transportation costs. Preferred Sands believes this enables it to offer high-quality sands at a lower all-in cost of ownership as compared to competitors.

In addition to its raw frac sands, the company manufactures and sells a suite of proprietary coated sands which have been designed to provide customers with additional benefits, including features such as enhanced proppant transport and reduced flowback, which improves well performance and reduces costs for the end user, and the reduction of dust in the handling of these products.

Preferred Sands intends to use the net proceeds from the offering to repay its debt, with the remainder going toward working capital and general corporate purposes.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.