IPSCO Tubulars Gears Up for IPO

By Chris Lange Updated Jan 12, 3:57AM EST · Published Jan 30, 12:15PM EST

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IPSCO Tubulars Gears Up for IPO — © Thinkstock

IPSCO Tubulars has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company intends to sell its 23.26 million shares in the range of $20 to $23 per share, with an overallotment option for an additional 3.49 million shares. At the maximum price, the entire offering is valued up to $615.12 million. The company intends to list its shares on the New York Stock Exchange under the symbol IPSC.

The underwriters for the offering are Merrill Lynch, Morgan Stanley, JPMorgan, UBS Investment Bank, Citigroup, Credit Suisse, Barclays and Evercore ISI.

This is a leading, growth-oriented producer and supplier of seamless and welded oil country tubular goods (OCTG), with a proprietary suite of premium and semi-premium connections. As a vertically integrated producer of seamless pipe and an efficient operator of steel pipe production, heat treating and threading facilities, IPSCO is able to efficiently meet customer demand and exercise control over its cost structure.

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The primary end market for its products is onshore exploration and production (E&P) operators in the United States and Canada. These end-users operate in geographic locations with environments that require casing and tubing materials capable of meeting exacting standards for temperature, pressure, corrosion, torque resistance and abrasion. Through its comprehensive and technologically advanced portfolio of OCTG, the company is able to serve as a single-source supplier for E&P end-users and respond to a rapidly increasing per-well demand for OCTG.

OCTG are available with the end-user’s choice of 26 market-leading proprietary connections as well as multiple connections that meet or exceed American Petroleum Institute certified (API) standards. IPSCO also produces line pipe for the transport of crude oil, natural gas and natural gas liquids from producing fields to processing plants and refineries and for the transport of refined products, as well as standard, structural and industrial pipe for the agricultural, commercial construction and automotive industries.

The company intends to use the net proceeds from the offering to repay its debt, as well as for 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.