NEW YORK (AP) — Shares of EP Energy are lower on their first day of trading after an initial public offering.
The Houston-based oil and natural gas exploration company said on Thursday that it would raise as much as $765 million if all options are exercised. It offered 35.2 million shares, and the total would climb to around 40 million shares if underwriters want the additional shares.
EP Energy stock was initially expected to be priced at $23 to $27 per share, but ended up pricing at $20.
In late morning trading, the shares were down 64 cents, or 3.2 percent, at $19.36.
The company says it will use the proceeds from the offering to pay off notes and other debt, and to pay a management fee.