Energy Stock Slump: Venture Global Shares Drop Amid $58B Market Cap Debut
On its first day of trading, shares of natural gas exporter Venture Global dropped 4% as the business sought to gauge investor interest in energy stocks in light of the Trump administration’s efforts to enact a comprehensive plan to increase oil and gas production. With shares closing the day at $24, the company’s market valuation was approximately $58 billion. After Cheniere, Venture is the United States’ second-largest LNG exporter.
The Trump administration has made very clear they support growing LNG exports,
Venture CEO Mike Sabel
Energy Giant Venture Global Falls 3.8% Below IPO Price on NYSE Debut
In order to raise $1.75 billion and reach a total valuation of roughly $60.5 billion, the company priced its 70 million shares for an IPO at $25. However, when NYSE trading started on Friday afternoon, the shares opened 3.8% below that price at $24.05.
Venture Global had already drastically reduced the price of its initial public offering (IPO) from its initial aim before that opening trade. In order to raise roughly $2.2 billion at the halfway point and reach a total valuation of $110 billion, the business had initially intended to offer 50 million shares at a price between $40 and $46.
Venture’s IPO is the biggest by an oil and gas company in ten years and the fourth largest since 2000. It is valued at about $60 billion, making it the eleventh-largest energy firm that is publicly traded.
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