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“Financial Times” Editor Roula Khalaf chose her favorite story in this week’s weekly communication.
After the US Energy Group Venture Global has greatly reduced the issuance of the issuance earlier this week, with the first public offering of Wall Street this year, the stock price of its first public stock fundraising fell below the listing price.
After the transaction started on the New York Stock Exchange on Friday, the stock price of LNG exporters fell 5%to $ 23.76. Later, it returned to $ 24. According to data from the IPO research supplier Renaissance Capital, the Group’s stock price of at least $ 50 million last year rose by an average of 14%on the first day of the Group’s stock price, which was in sharp contrast.
Venture Global’s original valuation was 110 billion US dollars, which was higher than the Petroleum Giant British Petroleum Corporation (BP). $ 60 billion. The group raised $ 1.75 billion in the IPO.
People familiar with the matter said that although Wall Street bankers are preparing for a series of listing, the scale and timing of interest rate cuts highlight the intense emotions of investors’ rising valuations in the US stock market. Investors said that the specific concerns of the transaction also affected demand.
Michael Alfaro, chief investment chief of hedge fund Gallo Partners, said, “When the management persistently pushing the valuation is almost twice that of the industry, the excitement before the Venture Global launch disappears.”
A potential investor added that Venture Global’s bankers have explained to them the principles of pricing and why they use so high. “I rejected them at first, and then they tried to insist on thinking that I was a strange person, and all other investors agreed to the higher the Band ratio. The gas lamp control was in the best state,” said the person.
A banker involved in the transaction was surprised by the coldness of the first appearance, saying that many investors were “deeply dissatisfied.”
Mike Sabel, co -founder and CEO of Venture Global, rejected concerns about reducing the scale of listing. He said in an interview with the Financial Times on Thursday evening that the result of this financing was “extremely successful financing” and the transaction price “Very high”.
Earlier, the US President Trump ordered the permission of the LPG receiving station this week, ending the suspension of the oil bosses that caused the oil bosses during the Joeynden era.
Venture Global has established a firm connection with the upcoming government. In April, Sabel attended a dinner hosted by the Haihu Manor for oil and natural gas executives. It is said that Trump requested a $ 1 billion campaign donation at the dinner in exchange for abolition of environmental policies. The company donated $ 1 million for Trump’s inauguration campaign.
Sabel said that the time of the IPO process does not match the Trump inauguration ceremony, but he added that the government’s change will promote the development of the oil and gas industries. He said: “The Trump administration does provide an excellent opportunity for investors, allowing them to benefit from the coming permit, supervision and global political discussion.”
SABEL and co -founder Robert Pender (controlling 84% of the company’s shares) has created a modular construction of liquefied natural gas facilities, which allows most of the prefabrication of large facilities to complete outside the field to reduce costs and shorten project delivery time.
Venture Global has won the reputation of the liquefied natural gas industry. The industry has always attached great importance to the close relationship with basic customers. These customers have signed long -term supply contracts so that the company can raise funds to build terminals.
However, when Russia fully invaded Ukraine in 2022, the price of LNG has soared, the company has made a controversial decision, that is, selling a large number of products in the spot market instead of performing long -term contracts. Shells, British Petroleum Corporation and several other foundation customers have raised a $ 5 billion arbitration claim to Venture Global, saying that the company violated long -term promises to profit from their spot market.
The company operates two liquefied natural gas receiving stations along the coast of Mexico, and has denied any contract.
Goldman Sachs, Morgan Chase and Bank of America served as a joint account manager of Venture Global IPO.
