Intriguing IPOs: Flowco Holdings (FLOC)

There's the investment thesis, then there's the thing that will make the company successful.

Los Angeles oil field near 1st Street and Glendale Boulevard, August 20, 1901 (California Historical Society)

Sometimes, when investing, you’re betting on events that you don’t know you’re betting on. You think you’re betting on a business with the right strategy in an industry with strong tailwinds. In reality, you’re betting on the board of directors picking the right person to replace the outgoing CEO or for management to integrate a large acquisition target effectively.

It took me reading Flowco Holdings’ (NYSE: FLOC) IPO prospectus a couple of times to realize that this stock isn’t a bet on the vitality of the oil and gas industry. Sure, its future comes from more oil and gas producers signing up for its services and equipment. For the investment thesis to work, something else likely needs to happen.

Let’s dig in…

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