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LNG leader Venture Global targets $110bn IPO valuation

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Venture Global LNG, a prominent US-based liquefied natural gas exporter, has unveiled plans for its highly anticipated initial public offering, aiming for a valuation of up to $110bn.

Venture Global LNG, a prominent US-based liquefied natural gas exporter, has unveiled plans for its highly anticipated initial public offering, aiming for a valuation of up to $110bn. The company, headquartered in Arlington, Virginia, intends to raise as much as $2.3bn by offering 50 million shares priced between $40 and $46 each. The listing is set to debut on the New York Stock Exchange under the ticker “VG,” making it one of the most significant energy IPOs in recent years.

The timing of this offering aligns with surging global demand for LNG, as nations transition to renewable energy and seek cleaner alternatives to coal and oil. The United States, now the world’s largest LNG exporter, has leveraged abundant natural gas reserves and strategically located Gulf Coast terminals to meet the growing needs of Europe and Asia. A shift in the US regulatory landscape is expected, with President-elect Donald Trump anticipated to reverse the Biden administration’s pause on new LNG export licenses, potentially bolstering the industry’s growth.

Venture Global, founded in 2013 by former investment banker Michael Sabel and financial lawyer Robert Pender, has experienced a meteoric rise. The company began generating revenue in 2022 when its first facility, Calcasieu Pass in Louisiana, became operational. Its Plaquemines facility, which began producing LNG last month, is the first new US plant to come online since 2022 and is expected to become one of the world’s largest LNG facilities once fully operational. The founders will retain over 50% voting control post-IPO, ensuring continuity in leadership as the company expands.

This IPO would be among the largest energy listings in US history. With a targeted $2.3bn raise, it could rival iconic offerings such as Conoco’s $4.4bn IPO in 1998 and Kinder Morgan’s $3.3bn listing in 2011. As of September 30, 2024, Venture Global had raised $54bn in capital for its projects and generated $19.6bn in gross LNG sales, further cementing its position as a major player in the sector.

Despite its rapid growth, Venture Global faces challenges, including legal disputes with customers over undelivered cargoes from its Calcasieu Pass facility. However, the company is well-positioned to capitalise on the projected doubling of US LNG capacity between 2024 and 2028, as reported by the Energy Information Administration. With Goldman Sachs, J.P. Morgan, and BofA Securities leading the underwriting, Venture Global’s IPO not only marks a milestone for the energy sector but also signals renewed momentum in global equity markets.

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