Shares of Dallas-based RSP Permian rose 3 percent on the energy producer’s first day as a public company.
The independent oil and natural gas company’s stock (ticker: RSPP) gained 65 cents to close at $20.15 as 12 million shares traded hands Friday on the New York Stock Exchange. At that price, the company has market capitalization of more than $1.4 billion.
The offering of 20 million shares raised $390 million. RSP Permian sold about 9.2 million shares and will repay a term loan with proceeds as well as compensate existing investors and employees. Existing stockholders sold 10.8 million shares.
The company says it focuses on acquiring and developing unconventional oil and liquids-rich natural gas reserves in West Texas’ Permian Basin. It is backed by Irving-based Natural Gas Partners, which also is backing Rice Energy, a Pennsylvania producer scheduled to go public next week.