Lower 48-focused Kodiak Gas Services LLC, the largest privately owned natural gas contract compression company in the country, is preparing to go public with an offering that could fetch a valuation of nearly $1.7 billion.

Based in Montgomery, TX, about 50 miles northeast of Houston, Kodiak is proposing to sell 16 million shares through an initial public offering (IPO), which could fetch $19-22 each. At the top end of the proposed range, the company could raise $350 million-plus. Kodiak would be listed on the New York Stock Exchange under the “KGS” ticker.

“We are a leader in large horsepower compression, with approximately 81% of our approximately 3.2 million hp fleet comprised of compression units larger than 1,000 hp,” management said last Tuesday (June 20) in the...