NEW YORK — Shares of Midstates Petroleum are jumping 7.2 percent on the first day of trading as a public company.
The Houston exploration and production company's offering of 24 million shares was priced at $13. That was significantly below its expected range of $16 to $18.
The shares opened at $13.25 and rose to $14.21 in late morning trading.
The company sold 18 million shares of its common stock in the offering, with stockholders selling the remaining 6 million.
Midstates plans to use the proceeds from the offering to redeem preferred units issued by one of its affiliates and repay some of its outstanding debt.
Midstates Petroleum Co. is owned by funds affiliated with investment firm First Reserve Corp.