Austin, Texas-based USA Compression Partners on Monday pushed forward with its planned initial public stock offering, setting a price range for its shares of between $19 and $21, according to securities filings.
At that price range, USA Compression Partners -- which is one of the largest natural gas compression service providers in the nation -- projects the IPO could raise about $241 million.
The company said that it intends to use the IPO proceeds to pay down debt.
USA Compression Partners originally registered for an IPO in June 2011, projecting the offering would raise $200 million. In April of 2012, the company lowered the amount it expected to raise to $75 million. Monday's pricing, however, exceeds even the original $200 million projection.
Austin had two IPOs last year: software-maker Bazaarvoice raised $114 million in February and Tex-Mex restaurant chain Chuy's raised $75.8 million in July.
USA Compression is currently the only Austin company with an IPO in the pipeline.
Founded in 1998, USA Compression provides services for the natural gas industry. It leases systems that compress natural gas to create the pressure needed for production and transportation. Its equipment is used in key natural-gas production areas, including the Eagle Ford and Barnett shale-gas plays in Texas.
In Monday's securities filing, USA Compression said, "we believe compression services for shale production will increase in the future." It cited a report by the U.S. Energy Information Administration that predicts that natural gas production from shale formations will grow from 34 percent of total U.S. natural gas production in 2011 to 50 percent in 2040.
USA Compression is owned by Riverstone Holdings, a New York-based private equity firm that bought 97 percent of the company in 2010.
For the nine months ending Sept. 30, 2012, the company had revenue of $87 million and net income of about $3.6 million.
As of Sept. 30, 2012, the company had 227 employees, according to a securities filing.
USA Compression plans to trade on the New York Stock exchange under the ticker symbol USAC. IPOScoop.com, which tracks initial public offerings, is projecting that USA Compression will begin trading on Jan. 15.
Underwriters on the deal are Barclays Capital Inc.; Goldman Sachs & Co.; J.P. Morgan Securities and Wells Fargo Securities.
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