StockMarketWire.com - Riverstone Energy said it would gather gross proceeds worth around $85m from the initial public offering of Centennial Resources Development, in which it holds a significant stake.

Riverstone said it participated in the IPO for its proportional share of the offering, resulting in the sale of around 4.46m shares at $19.50 each.

The company had originally invested $175m in Centennial in October 2016 at $10 per share, with an additional $93m added in December 2016 at $14.54 per share to fund the acquisition of Silverback Exploration.

Following the IPO transaction, it would have has sold around 8.71m shares for gross proceeds of $172m, implying a gross multiple of invested capital of 1.8 times and a gross internal rate of return of 55% on its investment.

Riverstone said it retained a substantial holding in Centennial of around 15.2m shares.



Story provided by StockMarketWire.com