Ranger Energy Services Inc. (NYSE: RNGR) launched its IPO of 5,862,069 shares of its Class A common stock at $14.50 per share on Aug. 11.

In addition, Ranger granted the underwriters a 30-day option to purchase up to an additional 879,310 shares of Ranger’s Class A common stock at the IPO price, less underwriting discounts and commissions. The offering is expected to close on Aug. 16, subject to customary closing conditions.

Ranger intends to contribute all of the approximately $75.2 million of net proceeds, or $87.1 million if the underwriters exercise their option to purchase additional shares in full, from this offering to its subsidiary, Ranger Energy Services LLC. In exchange for such contribution, Ranger LLC will issue limited liability company units in Ranger LLC to Ranger Inc.

Ranger LLC intends to use such net proceeds to repay outstanding debt, pay cash bonuses to certain employees, fund the remaining cash for the acquisition of substantially all of ESCO Leasing, LLC’s assets and certain of its liabilities, and for general corporate purposes that may include the acquisition of high-spec well service rigs.