Apollo-Backed Athlon Energy Files For IPO

Target: Athlon Energy Inc

Price: $345 million

Sponsor: Apollo Global Management LLC

Financial Adviser: Citigroup

Athlon Energy Inc, backed by Apollo Global Management LLC, filed with U.S. regulators to raise up to $345 million in an initial public offering of its common stock, sister news service Reuters reported.

Athlon, which buys and develops oil and liquid-rich natural gas reserves, was founded in 2010 by former employees of Encore Acquisition Co. Encore was acquired by Denbury Resources Inc in 2009 for $3.2 billion to create one of North America’s largest oil production and exploration companies.

A recovering U.S. economy and booming stock market have encouraged many private equity firms to take their companies public this year. Global equity fundraising rose 24 percent in the first quarter from a year earlier as strong markets and easing concerns about the economy encouraged more companies to raise capital through IPOs and other capital market transactions.

Fort Worth, Texas-based Athlon told the U.S. Securities and Exchange Commission in a preliminary prospectus that Citigroup was underwriting the IPO. The filing did not reveal how many shares the company planned to sell or their expected price. The proceeds would be used to repay debt and providing additional liquidity in drilling program, the company said in the filing.

The company intends to list its common stock on the New York Stock Exchange under the symbol “ATHL.” Athlon reported net income of $53 million on revenue of $157.1 million for 2012.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

Avik Das is a correspondent for Reuters in Bangalore.