Venture Global LNG Debuts on NYSE with $60.5 Billion Valuation

NEW YORK, Jan. 24 (Reuters) – Venture Global LNG made its public market debut on Friday with a valuation of $60.5 billion, marking one of the largest U.S.-listed energy companies despite a 40% reduction from its initial $110 billion target. The company raised $1.75 billion by selling 70 million shares at $25 each, below its original price range of $40 to $46.

The IPO comes amid skepticism from investors and analysts over the company’s long-term profitability and ongoing legal disputes with major customers, including BP, Shell, and Edison. These disputes stem from delays in delivering cargoes due to extended testing and optimization processes at its Calcasieu Pass facility, which began producing liquefied natural gas (LNG) in 2022 but remains in the commissioning phase.

“A less talked about issue of the deal is the extremely low float… which is highly unusual and presents a significant risk factor due to overhang down the road,” said Josef Schuster, CEO of IPOX, an IPO-focused investment index firm.

Venture Global’s market debut is seen as a litmus test for energy companies under the new administration, which has prioritized expanding U.S. energy output and rolling back climate policies. Earlier this week, the administration issued an order to resume processing export permit applications for new LNG projects, signaling a pro-energy sector stance.

Despite the reduced valuation, Venture Global ranks among the top U.S. energy companies, surpassing high-profile names like Occidental Petroleum, Marathon Petroleum, and Schlumberger. The company’s stock will trade on the New York Stock Exchange, marking the largest IPO ever by an LNG company globally, according to Dealogic data.

“The high market cap reflects the company’s ambitious development plans,” said Nicholas Einhorn, director of research at Renaissance Capital. “The company will definitely need to raise more capital over time, both equity and debt, to finance its growth plans.”

Global LNG demand has surged in recent years as countries shift toward cleaner energy sources, with the U.S. emerging as a key supplier to Europe and Asia. Venture Global competes with industry giants like Cheniere Energy, Freeport LNG, TotalEnergies, Chevron, ExxonMobil, and Petronas for a share of the lucrative market.

The energy sector has seen sluggish IPO activity, with only six energy IPOs in 2024 raising nearly $800 million—a fraction of the broader market’s $29.6 billion raised by 150 companies. Rising commodity prices and optimism for pro-energy policies are expected to drive a recovery in energy sector IPOs in 2025.

“For energy and LNG companies, as we are seeing with Venture Global, achieving those very high premiums at IPO is proving more challenging, particularly when measured against established public market peers,” Schuster added.