Venture Global IPO Revised with Lower Price Expectations
Venture Global Inc. has significantly reduced the price range for its initial public offering (IPO), potentially affecting its market valuation.
The LNG exporter now plans to offer 70 million shares at $23-$27 each, a decrease from the previously targeted range of $40-$46. This would result in a market value of approximately $65 billion at the top end, down from the previous estimate of $110 billion.
The lower pricing could impact sentiment for other potential energy sector IPOs in the US. Recent data shows a decline in energy IPO activity, with only six companies going public on US exchanges in 2024 and raising a combined $667 million.
Despite the reduced price range, Venture Global's targeted valuation remains relatively high compared to competitors. Cheniere Energy Inc., the largest US LNG exporter, has a market value of $56 billion.
In the nine months ended September 30, Venture Global reported net income of $756 million on revenue of $3.4 billion. This compares to net income of $3.6 billion on revenue of $6.3 billion in the same period in 2023.
LNG is expected to play an increasingly significant role in global energy markets as nations transition to cleaner energy sources. The US is poised to strengthen its position as a leading supplier of LNG, with a focus on fossil fuel production under the Trump administration's energy policy.