Drilling equipment and services provider HMH Holding Inc. announced on Tuesday, March 31, that its U.S. initial public offering has raised $210 million. The company issued 10.5 million shares of common stock at a price of $20 per share, giving the company a total market valuation of approximately $862 million. The final offering price was set near the lower end of the company's targeted range of $19 to $22 per share.
HMH Holding Inc. is scheduled to begin trading on the Nasdaq Global Select Market on Wednesday, April 1, under the ticker symbol "HMH". The company was formed through the strategic combination of two industry leaders. In 2021, global energy technology firm Baker Hughes and Norwegian investment company Akastor reached an agreement to merge their respective offshore drilling equipment businesses, creating the joint venture now known as HMH.
The company operates several well-known industry brands, including Hydril, VetcoGray, and Wirth. Its business encompasses a full range of drilling systems and pressure control equipment required for both offshore and onshore oil and gas operations. HMH maintains a global presence with operations in 16 countries and sells its products in over 60 nations.
Although the company initially filed for an IPO in August 2024, it formally advanced its capital market plans only recently, against a backdrop of fluctuating global energy prices and recovering market demand. Financially, HMH has demonstrated stable growth in the period leading up to its listing. According to its filing with the U.S. Securities and Exchange Commission, the company reported revenue of $821.8 million and a net profit of $46.1 million for the fiscal year ended December 31, 2025.
The proceeds from the IPO have a designated use, with the company planning to allocate approximately $137.1 million to repay shareholder loans, primarily to Baker Hughes and Akastor. Following the completion of the IPO, Baker Hughes and Akastor will collectively retain about 75.6% ownership in the company, maintaining their controlling stake.
The successful pricing and listing of HMH are viewed by the market as a significant indicator of recovery in the energy equipment sector. Against a macroeconomic environment of sustained geopolitical tensions supporting high crude oil prices, investors have shown a degree of preference for tangible assets within the oilfield services domain. The offering was led by a syndicate of international investment banks including J.P. Morgan, Piper Sandler, and Evercore ISI acting as joint book-running managers.
Comments