Diamondback shares rise in initial trading

Diamondback goes public, shares jump in initial trading of oil and gas company

Associated Press

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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