Diamondback Energy prices IPO

MIDLAND, Texas -- Diamondback Energy Inc. said Tuesday that it plans to sell 12.5 million shares in its business for between $17 and $19 per share in an initial public offering of the oil and gas company.

At the midpoint of that range, the IPO would raise $225 million. The company is also offering underwriters the option to buy nearly 1.9 million additional shares in overallotments.

Diamondback expects proceeds of $208.5 million from the offering, after deducting costs and commission, according to a filing with the Securities and Exchange Commission. It plans to use the money to repay debt and fund exploration and development activities, along with general corporate purposes.

The independent oil and gas company, based in Midland, Texas, plans to list its common stock on the Nasdaq under the symbol "FANG".

Diamondback began operations in 2007. It focuses on developing and exploring petroleum reserves in the Permian Basin of West Texas. Annual oil and gas revenue rose from $26.4 million in 2010 to $47.2 million in 2011. Net income was $8.2 million in 2010. It had a loss of $545,051 in 2011.

The company did not indicate in its filing when it would launch the IPO. Credit Suisse will manage the offering, and nine other firms will co-manage.

Diamondback said that its equity sponsor, investment firm Wexford Capital, will own nearly 42 percent of the company's stock following the completion of the offering.