C&J Energy shares jump in their market debut

July 29, 2011 - 1:14 PM

NEW YORK (AP) — Shares of C&J Energy Services are up almost 7 percent Friday in their market debut.

The Houston company, which provides services to the oil and natural gas industries, priced its initial public offering Thursday of 11.5 million shares at $29 apiece. In early afternoon trading, its shares are up 6.6 percent, or $1.92, to $30.92. They earlier traded as high as $32.16.

C&J is selling 4.3 million shares, while shareholders are selling 7.2 million.

Some of the shareholders have also given underwriters a 30-day option to buy up to 1.7 million additional shares. The offer is expected to close on Aug. 3.

C&J expects to use the net proceeds of approximately $113 million it receives from the offering to pay off debt and buy new equipment.