The newly issued shares of Jones Energy Inc. dipped 7.5 percent on their first day of public trading Wednesday, a decline that came after the company had already scaled back its initial public offering.
The Austin oil-and-gas company’s stock debuted on the New York Stock Exchange at $15 apiece Wednesday morning, but by the end of the trading day the price had dropped $1.13 to close at $13.87 per share.
That decline followed a reduction of the company’s original pricing terms, which it had announced earlier this month. The firm initially set plans to sell 14 million shares at $17 to $19 apiece. At the midpoint of that range, the company said it expected to raise a net total of $232.3 million.
On Wednesday, it ended up dealing 12.5 million shares at $15 each, raising net proceeds of $171.8 million — 26 percent lower than its original target.
Jones Energy’s original terms could have made it the most-valuable Central Texas IPO since Freescale returned to the public markets in 2011. However, even at its reduced price, the offering remained on par with recent local offerings. Last week, for example, the Austin online coupon company RetailMeNot raised $191 million in its IPO.
Jones Energy, which is trading under the symbol JONE, plans to use the proceeds to pay down outstanding debt, according to regulatory documents filed with the U.S. Securities and Exchange Commission.
According to its previous regulatory filings, the company employed 73 people at the end of March. As of April 30, it was producing an average of 15,800 barrels of oil equivalent per day from fields in North Texas and Oklahoma, up from an average of 13,300 barrels per day at the end of 2012.
The company posted revenue of $149.8 million in 2012, down 11 percent from 2011 but still 52 percent higher than in 2010, according to the securities filing.
Since its founding by third-generation oilman Jonny Jones in 1988, Jones Energy has drilled more than 580 wells, including more than 400 horizontal wells. Jones, the company’s chairman and chief executive, planned to purchase more than 1.3 million of the newly offered shares, Wednesday’s regulatory filing noted.