Venture Global's US $ 58 billion market show has not reached high expectations
Author: Manya Saini and NISHANT
(Reuters) -On Friday, Venture Global's stock price opened at the downturn of the New York Stock Exchange. The opening price was nearly 4%lower than the first public offering price, which made the valuation of this liquefied natural gas exporter reached 58.2 billion US dollars, and and and of. It strengthened investors' cautious attitudes towards new listed companies.
The IPO is expected to be the first heavy market in 2025, and it is also a tester for the appetite of energy companies under the leadership of the Trump administration.
Venture Global, headquartered in Alington, Virginia, has greatly reduced valuations when selling IPO shares on Thursday, and the final determined price is nearly 45%lower than its previous target $ 110 billion.
It sold 70 million shares and raised $ 1.75 billion, far lower than its original planned $ 2.3 billion.
Investors and analysts said that the initial goal was “very high” and expressed concerns about its long -term profit expectations and continuous legal struggles.
The company's stock price is $ 24.05, while the IPO price is $ 25.
The chief analyst and strategic officer of Bigdata.com Aakarsh Rattan Ramchandani (Aakarsh Rattan Ramchandani) said: “I don't think investors do not fully believe that its performance is the closest competitor of the opponent double.”
Nevertheless, Venture Global will still become one of the largest energy companies listed in the United States, surpassing competitors Cheniere Energy and Western Petroleum Corporation and Marathon Petroleum.
Nicholas Einhorn, a research director of Renaissance Capital, who focuses on the IPO, said: “The venture capital business involves complex business. Compared with some large IPOs, it may attract less investors.”
In recent years, with the change of clean energy, the demand for global liquefied natural gas has continued to rise, and the United States has gradually become the main supply country in Europe and Asian countries.
President Donald Trump issued an order earlier this week to restore the application for export permits for the new liquefied natural gas project.
He said: “We will conduct drilling, babies, and drilling.” He outlined a plan to maximize US petroleum and natural gas output by announcing the emergency state of national energy, canceling excessive supervision, and exit the United States withdrawal from the global climate change agreement.
The largest liquefied natural gas in history for the first time public fundraising
According to DEALOGIC data, the issue of Venture Global's stock marks the largest IPO in the history of global liquefaction natural gas. This is the third largest energy and public business sector that has been listed in the United States since 1995.
Ein Horne, who Fuxing Capital, said: “The high market value reflects the company's ambitious development plan.” “Over time, the company must raise more capital, including equity and debt, to provide funds for its growth plan. “