Core Insights - WaterBridge Infrastructure LLC successfully raised $634 million in its IPO, with shares rising as much as 25% from the IPO price of $20 to an opening price of $25 [1][2] - The company has a market value of approximately $2.85 billion based on its trading price of $23.98 [2] - WaterBridge is a significant player in the water handling sector, particularly in the US shale industry, with around 2,500 miles of pipelines [3] Financial Details - The IPO involved the sale of 31.7 million shares at the high end of the marketed range of $17 to $20 each [1] - Horizon Kinetics Asset Management LLC expressed interest in purchasing up to $120 million worth of stock [2] - Proceeds from the IPO will be used to reduce debt and acquire a stake in WaterBridge held by Elda River Capital LLC [3] Industry Context - The water handling business is increasingly vital in oil production, especially in the Permian Basin, where wastewater generation is significant [4] - Water disposal activity in the Permian has increased over sevenfold in the past 15 years, highlighting the sector's growth [4] - The IPO follows Western Midstream Partners LP's acquisition of Aris Water Solutions Inc. for approximately $1.5 billion, indicating heightened interest in the water infrastructure sector [5] Company Background - WaterBridge is one of the largest water handlers in the US shale patch, emphasizing its strategic importance in the oil industry [3] - The company previously considered an IPO that could have valued it at over $1 billion in 2018 [5] - LandBridge Co., which shares management with WaterBridge, went public in June 2024, raising $283.5 million and seeing its shares more than triple from the IPO price [6]