The largest energy IPO in over a decade! American LNG company Venture Global seeks a valuation of $110 billion
U.S. LNG company Venture Global plans to conduct an IPO with a valuation of $110 billion, issuing 50 million shares and raising up to $2.3 billion. This will be one of the largest listings in the energy sector in over a decade. Since its establishment, the company has raised $54 billion for LNG facility construction, and long-term contracts are expected to generate $107 billion in revenue. However, Venture Global faces a $5 billion arbitration claim, which may impact its financial condition
American LNG companies can't wait for Trump to take office.
Recently, Venture Global, one of the largest liquefied natural gas (LNG) exporters in the United States, is seeking to go public with a valuation of $110 billion. According to documents submitted by Venture Global to the U.S. Securities and Exchange Commission on Monday, the company plans to issue 50 million shares at a maximum price of $46 per share, raising up to $2.3 billion.
If the IPO process goes smoothly, this will become one of the largest listings in the energy sector in over a decade.
Analysts point out that Venture Global's IPO plan coincides with a critical period for the U.S. LNG industry—previous reports from Wall Street indicated that Trump plans to launch a comprehensive energy policy on his first day in office, including approving new liquefied natural gas (LNG) project export licenses, accelerating oil drilling on U.S. coasts and federal lands, and repealing a series of climate legislation and environmental regulations implemented by former President Biden.
Therefore, LNG developers are expected to be among the biggest beneficiaries during Trump's second term.
However, Europe may become the "victim"—in early January, a polar vortex swept across the U.S., causing natural gas prices to soar, while Russia officially halted gas transit to Europe through Ukraine on New Year's Day, forcing Europe to increase imports of expensive U.S. LNG.
According to the IPO documents, since its establishment 11 years ago, Venture Global has raised approximately $54 billion to build LNG facilities and cover operating expenses. In the future, Venture Global's long-term contracts are expected to generate $107 billion in revenue.
However, Venture Global's rapid growth and sales strategy have also sparked controversy. Several clients, including Shell and BP, have filed arbitration claims totaling $5 billion against Venture Global, accusing it of violating long-term commitments to profit from the spot market. The IPO documents submitted by Venture Global on Monday also indicated that these claims could lead to "substantial" payouts, the termination of certain long-term contracts, and potentially increase the company's debt levels.
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