Permian-focused LandBridge aims to raise up to $319 million in U.S. IPO – 06/17/2024 at 6:58 p.m.

Permian-focused LandBridge aims to raise up to $319 million in U.S. IPO – 06/17/2024 at 6:58 p.m.
Permian-focused LandBridge aims to raise up to $319 million in U.S. IPO – 06/17/2024 at 6:58 p.m.

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))

(Added potential assessment to paragraph 1)

LandBridge, a landowner in the oil-rich Permian Basin, said Monday it was seeking to raise up to $319 million in its U.S. initial public offering (IPO), which could give it a potential value of $1.6 billion.

The company, backed by private equity firm Five Point Energy, owns about 220,000 surface acres in the basin that it can lease to oil and natural gas producers. She also sells the resources extracted from her land.

LandBridge says this business model, which relies largely on fee-based contracts, reduces its vulnerability to commodity price volatility at a time when geopolitical and other risks have cast a shadow over oil demand.

Last week, the U.S. Energy Information Administration revised its oil demand growth estimate slightly higher for 2024, but a string of weak economic data from China dampened optimism. Monday.

LandBridge said it plans to sell 14.5 million shares at a price between $19 and $22 each. It will be listed on the New York Stock Exchange under the symbol “LB”

U.S. public markets have seen an influx of IPOs in recent months, after a nearly two-year slump, as expectations of a soft landing in the economy encourage companies to list their shares .

Goldman Sachs and Barclays are the lead underwriters for the IPO.

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