Excelerate Energy (EE proposed) brought some heat to the April IPO Calendar by launching its IPO early today. The liquefied natural gas (LNG) company plans to offer 16 million shares at $21 to $24 to raise $360 million in its IPO, set for pricing next week – on Tuesday night, April 12. The stock is expected to start trading Wednesday, April 13, on the New York Stock Exchange.
Barclays, J.P. Morgan and Morgan Stanley are the joint lead book-runners. Wells Fargo Securities is also a book-runner. The co-managers are Raymond James, Stephens Inc., Tudor, Pickering, Holt & Co., SMBC Nikko and BOK Financial Securities, Inc.
This is the first big IPO ($100 million or more) from major investment banks since Feb. 4, 2022, when clinical biotech Arcellx, Inc. (ACLX) went public.
“It’s the right sector at the right time,” a veteran IPO professional says. “The Street is hungry for IPOs. So it should do well, I think.”
Russia’s war on Ukraine – and the disruption of natural gas supply – is likely to help drive demand for this deal, seasoned IPO traders say.
Based in The Woodlands, Texas, Excelerate Energy is profitable. The company reported total revenue of $888.56 million and net income of $41.19 million for the year ended Dec. 31, 2021, according to the prospectus.
The company plans to pay a quarterly dividend, the prospectus says.
“We have grown our business significantly since our first floating storage and regasification unit (“FSRU”) charter in 2003,” the prospectus says. “Our business spans the globe, with regional offices in eight countries and operations in the United State, Brazil, Argentina, Israel, United Arab Emirates, Pakistan and Bangladesh.”
Excelerate Energy’s SEC filing early Monday generated a flurry of financial headlines and conversations on the Street.
Apart from this deal, the IPO Calendar is quiet. Just one tiny IPO – a unit offering by Lytus Technologies Holdings of India – and a SPAC IPO are on the IPO Calendar so far for the week of April 4, 2022. But that could change as the filings continue to flow into the SEC this week.
(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)
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