Diamondback shares rise in initial trading

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Associated Press

Posted on October 12, 2012 at 10:00 AM

Updated Friday, Oct 12 at 10:03 AM

Diamondback Energy Inc.'s shares are rising its first day of trading as a public company.

The Midland, Texas, company, which develops oil and natural gas reserves in Texas, raised $218.8 million in its initial public stock offering, selling 12.5 million shares for $17.50 each. It had projected a price of $17 to $19.

Diamondback says that after expenses, it expects proceeds of $204.6 million, which it plans to use to repay debt and search for oil and gas.

Trading on the Nasdaq under the symbol "FANG," shares are up 2.5 percent to $17.94 in morning trading.

Diamondback is one of nine companies to have gone public this week, a sign that the IPO market is revving up in the fourth quarter. All but one are trading above their IPO price.

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