Energy IPO Looms as Oil Prices Surge. Why Stocks Could Soar.
The Rise of Oil Stocks and the Upcoming IPO
Oil drillers and other energy stocks have seen significant gains this year, driven by a surge in crude prices. This increase is largely due to concerns over supply constraints caused by the ongoing conflict in Iran. As a result, companies involved in the oil services sector are benefiting from this favorable market environment.
One such company is HMH Holding, which has been gaining attention as it prepares for an initial public offering (IPO). HMH provides oil drilling equipment and related services, and its recent performance reflects the broader trend in the energy sector. Shares of energy technology and equipment company Baker Hughes, along with Norway’s oil services investing firm Akastor, have each risen nearly 40% in 2026. Now, HMH is set to capitalize on this momentum by going public.
HMH Holding’s IPO Plans
According to a filing with the Securities and Exchange Commission, HMH Holding plans to go public at a price range of $19 to $22 per share. The company is expected to begin trading on the Nasdaq under the ticker symbol HMH. It aims to sell just over 10.5 million shares, potentially raising $231.4 million at the upper end of its price range. At the $22 price point, HMH would be valued at $948.1 million.
This valuation appears reasonable when compared to similar companies in the industry. For instance, Baker Hughes trades at 2.2 times revenue for last year, while rivals Halliburton and SLB are valued at 1.4 and 2 times 2025 sales, respectively. HMH is also profitable, having generated net income of $46.1 million last year, although this represents a slight decline from the $52 million profit recorded in 2024.
Valuation and Investor Interest
On a price-to-earnings basis, HMH is trading at around 20.5 times trailing earnings, which is slightly lower than larger oil services firms like Baker Hughes, SLB, and Halliburton, which are valued between 21 and 25 times last year’s profits. This could make HMH an attractive investment opportunity for those looking for value in the sector.
The success of HMH’s IPO would also benefit its co-owners, Baker Hughes and Akastor, who each hold a 50% stake in the company. Following the IPO, both companies would retain between a 35.2% and 37% ownership stake in HMH, depending on whether underwriters exercise an option to purchase additional shares. JPMorgan Chase, Piper Sandler, and Evercore ISI are leading the deal, with several other investment banks acting as joint bookrunners and co-managers.
The Broader IPO Market
The IPO market had a strong year in 2025 and has started off well in 2026. However, there has been a temporary lull in new offerings during March, which is typical for this time of the year. Despite this, some recent IPOs have performed well, even amid broader market volatility linked to oil and geopolitical tensions.
For example, Japanese fintech PayPay, a mobile digital wallet, has surged more than 40% from its IPO price since its listing on March 12. Senior housing real estate firm Janus Living also made a successful debut in March, with shares rising almost 20% from their IPO price. Meanwhile, Swarmer, a tiny drone company, has seen its stock soar more than 600% from its IPO price after raising $15 million by selling only 3 million shares for just $5 apiece.
However, not all IPOs have been successful. MiniMed, a diabetes management company that was spun off from Medtronic, has struggled, with its stock down about 17% from its offering price.
Future IPO Expectations
Investors are now looking ahead to a potential wave of major IPOs later this year. Companies such as Elon Musk’s SpaceX and artificial-intelligence giants OpenAI and Anthropic are all expected to file for IPOs at some point in 2026. These developments could further shape the investment landscape and provide new opportunities for investors.
