LNG Giant Venture Global Sets Sights on $110 Billion IPO
As the energy landscape continues to evolve, US-based Venture Global LNG is poised to make a significant splash on the New York Stock Exchange with an initial public offering (IPO) valued at a staggering $110 billion. According to sources familiar with the matter, the company is preparing to present its share offering between $40 and $46 per share, which would place its value between $96 billion and $110 billion on a non-diluted basis.
A New Era for LNG Exports
The proposed IPO comes at a critical time, as President-elect Donald Trump has pledged to reverse President Joe Biden’s suspension of new LNG export licenses. This move could have far-reaching implications for the industry, and Venture Global is well-positioned to capitalize on the trend. With the US’ LNG capacity expected to more than double from 2024 to 2028, the company’s role in the sector is set to become even more prominent.
Facility Expansion and Challenges
Venture Global operates a ten million tonnes per annum (mtpa) facility at Calcasieu Pass, Louisiana, which began exporting LNG in 2022. While the facility is still undergoing commissioning, it has faced legal challenges from clients such as Shell, BP, and Edison due to undelivered contracted cargoes. Despite these hurdles, the company remains committed to expanding its operations and meeting growing global demand for LNG.
IPO Details and Timeline
The offering of 50 million shares could raise between $2 billion and $2.3 billion, although the final IPO price will depend on investor demand and market conditions. If all goes according to plan, Venture Global could price its offering around the middle of the week of 20 January. The company’s IPO filing also reveals that under extended force majeure, customers cannot cancel sales agreements after June 2025.
A Strong Pipeline of IPOs Ahead
Dealmakers are optimistic about the prospects for global equity capital market activity this year, driven in part by a strong pipeline of expected initial public offerings from prominent companies. Venture Global’s IPO could be the first significant share offering during President-elect Trump’s potential second term, setting the stage for a busy year ahead.
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