Permian Basin-focused Rattler Midstream LP priced its initial public offering at $17.50 apiece and upsized the offering size to 38 million common units, from the original 33,333,333 common units.
Underwriters have been given a 30-day overallotment option to buy an additional 5.7 million units at the offering price, according to a May 22 news release.
Upon closing of the IPO, the public would own a 25% stake in Rattler, or 29% if the underwriters exercise their overallotment option in full. Rattler's general partner and the remaining 75% interest, or 71% upon full exercise of the overallotment option, would be owned by its parent company Diamondback Energy Inc.
Rattler expects to receive $665.0 million in gross proceeds, or about $631.8 million in net proceeds, which would be distributed to Diamondback partly to reimburse the oil and gas driller for certain capital expenditures.
The common units are scheduled to start trading on the Nasdaq Global Select Market May 23, under the ticker symbol RTLR. The IPO is scheduled to close May 28.
Credit Suisse, Bank of America Merrill Lynch and J.P. Morgan are acting as lead book-running managers for the offering. Barclays, Citigroup, Goldman Sachs & Co. LLC and Wells Fargo Securities are also acting as joint book-running managers.
Rattler owns and operates midstream assets in the Midland and Delaware basins of the Permian Basin and provides midstream service to Diamondback under long-term, fixed-fee contracts.