Venture Global Shares Plummet 20% After Troubled IPO, Investors Remain Cautious
Shares of Venture Global Inc., a liquefied natural gas exporter, have crashed 20% since its initial public offering (IPO) price of $25 last week, reflecting a broad market selloff that wiped out $12 billion from its valuation.
The company faced a challenging start as a publicly-traded entity, shaving over 40% off its IPO price range due to investor demand for a lower valuation. This drop highlights investor skepticism towards companies lacking a public track record.
Venture Global's debut saw its stock plunge 4%, the worst opening performance for a company raising over $1 billion in the United States since Birkenstock Holding Plc in October 2023. Birkenstock's shares initially fell 13% before extending their decline to 21%.
Amidst the market selloff, Venture Global's performance poses challenges for IPO buyers, who require a 25% rally to break even. It took Birkenstock seven weeks to recover its initial $46 share price.
In contrast, recent IPOs have performed well. Flowco Holdings Inc., an oil field services company, has gained 20% since its debut this month. Home repair software provider ServiceTitan Inc. has held steady, delivering a 39% return for December IPO investors.