Drilling equipment and service provider HMH Holding (HMH.US) IPO priced at $20, raising $210 million, will debut on NASDAQ tonight.

Drilling equipment and service provider HMH Holding (HMH.US) announced on March 31st (Tuesday) local time that its initial public offering (IPO) in the United States raised $210 million, with a total of 10.5 million shares of common stock issued at a price of $20 per share, giving the company a total market value of approximately $862 million. The offering price was at the lower end of the company's target range of $19 to $22 per share. The company's stock is scheduled to begin trading on the Nasdaq Global Select Market on April 1st (Wednesday) under the symbol "HMH". As an energy service company with a deep industrial background, HMH was born out of the strategic integration of two industry giants. In 2021, global energy technology company Baker Hughes reached an agreement with the Norwegian investment company Akastor to merge their respective subsea drilling equipment businesses and form the joint venture known as HMH. The company currently operates multiple well-known brands in the industry, including Hydril, VetcoGray, and Wirth, offering a full range of drilling systems and pressure control equipment for offshore and onshore oil and gas operations. The company operates globally, with branches in 16 countries and products sold in over 60 countries. Despite submitting its IPO application as early as August 2024, it was only recently, against the backdrop of global energy price fluctuations and rising market demand, that the company officially moved forward with its capital market process. Financially, HMH demonstrated solid growth on the eve of its IPO. According to its prospectus filed with the U.S. Securities and Exchange Commission (SEC), for the fiscal year ending December 31, 2025, the company achieved revenue of $821.8 million and a net profit of $46.1 million. The funds raised from this IPO will have a clear destination, with approximately $137.1 million planned to be used to repay shareholder loans, primarily to Baker Hughes and Akastor. Following the IPO, Baker Hughes and Akastor will continue to collectively hold around 75.6% of the company's shares and maintain control. The successful pricing and listing of HMH is seen by the market as an important signal of recovery in the energy equipment industry. With the ongoing geopolitical tensions affecting oil prices globally, investors have shown a certain degree of favor towards industrial assets in the oilfield services sector. This offering was underwritten by international renowned investment banks such as JPMorgan, Piper Sandler, and Evercore ISI.