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Smart Sand Eyes IPO as Proppant Demand Intensifies

Smart Sand Inc., which provides proppant to North American operators, is preparing to go public and plans to raise up to $100 million.

The company, headquartered in The Woodlands north of Houston, is backed by private equity Clearlake Capital Group.

Smart Sands assets include two northern white sand processing sites in Wisconsin, with its primary facility in Oakdale, WI, on more than 1,100 acres, according to the filing to the U.S. Securities and Exchange Commission.

Fracture sand capacity could be expanded at Oakdale to meet growing demand, which Smart Sand officials projected could increase by 23% a year through 2020.

During 2Q2016 conference calls, several of North America's largest proppant sand providers cited higher intensity among their onshore customers as operators drill longer laterals and use more stages in completions (see Shale DailyAug. 10).

No pricing terms were disclosed but if the launch is successful, Smart Sand would trade on Nasdaq under "SND." Credit Suisse and Goldman Sachs are serving as co-lead underwriters.

The company booked $43 million in sales for the 12 months ending June 30. In the first six months of this year, Smart Sand reported a $2.2 million net loss on $19 million in revenue.

Clearlake has investments across the spectrum, including in Globe Energy Services LLC, Permian Basin-based oilfield services company, and IronGate Energy Services, which provides rental and tubular services to producers in North America.

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