NCS Multistage Holdings Could Head Lower On Lockup Expiration

October 25, 2017 concludes the 180-day lockup period on NCS Multistage Holdings (NCSM).

When the lockup period ends for NCSM, its pre-IPO shareholders, directors, and executives will have the chance to sell their 38.5 million outstanding shares. With just 9.5 million shares currently trading, any significant sales could flood the market and cause a sharp, temporary, decrease in share value.

 

 

(Source: S-1/A)

NCSM's insiders and pre-IPO shareholders include 12 individuals and two venture capital firms.

 

(Click on image to enlarge)

 

(Source: S-1/A)

Currently, NCSM trades in the $21 to $22 range, above its IPO price of $17 and higher than its first day closing price of $20.01 on April 28, 2017.

Business Overview: Provider Of Products And Services For Oil And Natural Gas Well Completions

NCS Multistage Holdings provides engineered products and support services for oil and natural gas well completions and field development strategies in the United States and globally, including Russia, China, and Argentina. They have over 140 clients as of 2016, including major oil companies and large independent oil and natural gas companies.

The company’s products include ballshift sliding sleeves, spotfrac systems, sand jet perforating products, liner hanger systems, airlock casing buoyancy systems, downhole frac isolation assemblies, and casing-installed sliding sleeves. In addition, NCSM offers advisory services to clients on completion designs and field development strategies.

NCSM began providing products and services in 2006, and since then their technology has been used in over 7,600 well completions representing more than 155,000 individual frac stages. The company’s market penetration in Canada is 26%, and it derived approximately 23% of its revenue in 2016 from the United States.

The company offers its products and services portfolio through its technically trained direct sales force and through operating partners. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.

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Disclosure: I am/we are short NCSM.

Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any ...

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