When can you buy the shares of this LNG supplier?
US-based flexible liquefied natural gas supplier Excelerate Energy is seeking to go public and announced the terms of its initial public offering on Monday, April 4. Since then, it seems to have caught the eye of potential investors in a rather lackluster IPO market.
This hasn’t been an exciting year for IPOs compared to 2021, when private companies capitalized on retail investor sentiment and garnered record gross proceeds.
Due to rising interest rates and the war between Russia and Ukraine, IPOs have not performed as well in 2022 and many companies have delayed or canceled their IPO plans .
When does Excelerate Energy go public?
It is estimated that Excelerate Energy could go public on April 13, 2022. However, interested investors should watch for an official announcement from the company or exchange it wishes to list on.
To invest in a stock, investors have the option of buying it online or through a stockbroker. Investors should note that investing in IPO shares has its pros and cons. It can open at a higher price and yield returns and it is also possible that the LNG supplier’s stock will open at a lower price leading to losses.
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The amended prospectus filed with the Securities and Exchange Commission revealed that Excelerate Energy aims to offer 16 million shares of common stock and kept the share price range between $21 and $24 each.
If the shares are sold at the highest price of US$24 per share, then the company could reach a valuation of US$2.5 billion. Excelerate Energy is set to debut on the New York Stock Exchange (NYSE) and trade under the ticker symbol EE.
The main underwriters of Excelerate Energy are Morgan Stanley, JP Morgan and Barclays. If the IPO goes ahead, it could be one of the first big IPOs in 2022.
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At the end of the line
Founded in 2003, Excelerate Energy has become a household name among LNG suppliers in the United States. The company claims to provide lower-emitting forms of energy and believes LNG can play a vital role in realizing a lower-carbon future.
Notably, climate change has become a serious issue and many countries are looking to reduce carbon emissions for a sustainable future. This could mean companies like Excelerate Energy have the potential to grow further.
Excelerate Energy claims to be one of the largest suppliers of regasified LNG in Asia and South America. It supplies regasified LNG to Brazil, Argentina, Pakistan and Bangladesh.
In fiscal 2021, Excelerate’s revenue jumped 106% year-on-year (YoY) to US$888.6 million, and net profit jumped 6% year-on-year to 41, 1 million US dollars.
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