Natgas producer BKV is valued at $1.56 billion in its NYSE debut

BKV shares rose by 3.1% on their New York Stock Exchange debut on Thursday. This gives the U.S. Natural Gas Producer a market cap of $1.56 Billion. Companies looking to list shares have a new window of opportunity as the long-awaited rate-cutting cycle of the U.S. Federal Reserve begins. Several companies are also speeding up their plans in order to avoid the uncertainty that will result from the November presidential elections.

BKV shares opened at $18.55 on their debut, as opposed to the $18 price for the initial public offer.

The company raised $270m by selling 15 million of its shares at $18 per share, which is below the range it originally advertised between $19 and $21.

EQT, America's largest natural gas producer, said it plans to increase its natural gas production during October and November, as the demand and price of the fuel increase.

Gas prices have fallen to multi-year lows, and U.S. producers of natural gas plan to reduce production in the second halves of 2024.

BKV is one of the producers of natgas that has been hit hard by low prices over the past two years. Oil companies, which pump gas as an byproduct, have increased supplies and pushed prices down in West Texas and Arizona.

BKV received funding commitments from Banpu Plc, its Thai parent company, last year to meet financial obligations until June 30, 2025 after it was unable to comply with certain lender's conditions.

Gas prices crashed and the company had to abandon its initial plans for an IPO.

Banpu will hold approximately 75.9% of BKV following the offering.

Citigroup and Barclays were the leading book-running managers of the offering. Reporting by Vedant Vichare, Editing by Devika Syamnath, and Shakesh Kuber

(source: Reuters)