((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Added analyst comment to paragraph 3) by Vedant Vinayak Vichare and Pritam Biswas
Shares of BKV BKV.N rose 3.1 percent in their listing on the New York Stock Exchange on Thursday, giving the U.S. natural gas producer a market capitalization of $1.56 billion.
The start of the US Federal Reserve’s long-awaited interest rate cut cycle has opened a window of opportunity for companies looking to list their shares on the stock market. Some are also accelerating their projects to avoid the uncertainty associated with the November presidential elections.
“Companies that don’t feel concerned about the outcome of the election will likely feel much more comfortable going public now. And bankers are certainly encouraging their clients to test the market as the S&P hit all-time highs,” said Phil Haslett, co-founder of EquityZen.
BKV shares debuted at $18.55, while the initial public offering price was $18.
The company raised $270 million by selling 15 million shares in its IPO at a price of $18 each, lower than the $19 to $21 target range it previously announced.
U.S. natural gas producers planned to cut production in the second half of 2024 as gas prices collapsed to their lowest level in several years.
BKV was among the natural gas producers hit hardest by sluggish prices over the past two years, as oil companies that pump the gas as a byproduct increased supply and pushed prices down in the West Texas, Arizona and California.
BKV secured financing commitments from its Thai parent company Banpu Plc last year
BANPU.BK to meet its financial obligations until June 30, 2025, after being unable to meet the conditions of certain lenders.
The company initially filed for an IPO in 2022, but had to put its plans on hold following the collapse in gas prices.
Banpu will hold approximately 75.9% stake in BKV following the offering.
Healthcare company Guardian Pharmacy GRDN.N made its market debut on the New York Stock Exchange alongside BKV on Thursday, while weight-loss drug developer BioAge Labs BIOA.O is expected to debut later in the day.
