Venture Global LNG will begin formally pitching to investors this week for its initial public offering (IPO).
The US LNG producer is aiming to secure a non-diluted valuation of as much as $110 bill, a document seen by Reuters and a person familiar with the matter said over the weekend.
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It could be the first major share offering to occur during President-elect Donald Trump’s second administration. He had promised on the campaign trail to overturn President Joe Biden’s year-long pause of new LNG export licenses.
The company plans to ask investors to pay between $40 and $46 per share when it begins marketing its New York Stock Exchange flotation today, the source said and the document showed.
This preliminary price range would value the company at $96 bill - $110 bill on a non-diluted basis, which does not include securities, such as options and restricted stock units.
The 50 mill share offering would bring in between $2 bill and $2.3 bill.
A source warned that Venture Global’s final IPO price was dependent upon investor demand and could ultimately fall outside of the range, and cautioned the IPO timing was dependent on market conditions.
Should the IPO meetings start this week, it would likely price its offering during the middle of the week of 20th January, the source said.
Venture Global, founded in 2013 by current co-chairs Michael Sabel and Robert Pender, exports LNG through US liquefaction terminals and then exported mainly to Europe and Asia.
US LNG export capacity is expected to more than double between 2024 and 2028, according to the US Energy Information Administration (EIA).
Venture Global operates the 10 mill tonnes per annum facility at Calcasieu Pass, Louisiana, that has been exporting LNG since 2022.
The facility is still being commissioned, which has been subject to a legal challenge from customers, including Shell, bp and Edison, over the non-receipt of contracted cargoes.
On 26th December, the company’s 20 mill tonnes per annum export facility at Plaquemines handled its first cargo, making it the first new LNG plant to begin operations in the US since 2022.
