NEW YORK: The energy industry is set to stage a comeback in the US initial public offering (IPO) market, with sizeable deals springing up after the worst year since 2003.
Just six energy IPOs priced on US exchanges in 2024, raising US$667mil to mark the lowest volume for the sector in 21 years, data compiled by Bloomberg show.
That figure could be surpassed in January alone.
Natural-gas exporter Venture Global Inc is seeking to raise US$2.3bil in a listing and oil-field services firm Flowco Holdings Inc is expected to price an IPO of as much as US$409mil this week.
The rebound comes amid a combination of rising commodity prices, outperformance from recent energy IPOs and pro-oil policies from President-elect Donald Trump.
All of these factors mean “the stars are lining up” for more energy deals, said Josef Schuster, founder and chief executive officer of Ipox Schuster LLC, an index provider focused on new listings.
Expectations that Trump will champion US liquefied natural gas exports and the energy sector will help provide a boost to the sector and sentiment for those looking to go public, Schuster said.
“I think the market is really ready for a slew of good energy IPOs,” Schuster said, adding that energy deals were well-received last year even in a time with lower oil and natural-gas prices.
Landbridge Co’s US$283mil listing was the largest oil and gas IPO on a US exchange in 2024, according to data compiled by Bloomberg, and its shares have climbed over 313% since the Houston-based firm started trading in late June.
BKV Corp’s offering was the second-largest, raising US$270mil. Its stock is also up, rising 33% since its debut in September.
Indeed, some of the comparable stocks for Venture Global and Flowco have also enjoyed strong runs. — Bloomberg
