LNG exporter Venture Global cuts target valuation for US IPO to $65.33 billion

LNG exporter Venture Global on Wednesday slashed the valuation it was seeking from its U.S. initial public offering to as much as $65.33 billion, significantly lower than the more than $100 billion it had initially aimed.

The company also lowered its offer price, effectively increasing the number of shares on sale against the backdrop of analysts warning that its high target valuation and small float could deter potential investors.

It now aims to sell 70 million shares at a price range of $23 to $27 to raise $1.89 billion, compared with its prior target of selling 50 million shares for $40 to $46 each to raise as much as $2.30 billion.

The pricing of an IPO is not guaranteed to fall within the range provided at the start of the formal marketing process and making adjustments is relatively common. The final price is often dictated by investor demand, underwriters and the company.

The company's share sale coincides with Trump issuing an order to resume processing export permit applications for new LNG projects, in a push to raise U.S. energy output and dismantle his predecessor's climate policies.

Trump's decision could pave the way for almost 100 million metric tons per annum of additional LNG by 2031 by projects that are significantly advanced, further cementing the U.S. as the world's largest LNG exporter.

The order reversed a pause on permits for new projects that put in place in early 2024 to study the environmental and economic effects of the booming export industry.

Reuters first reported the revised IPO plans on Tuesday, citing a source.

The company, founded in 2013 by former investment banker Michael Sabel and financial lawyer Robert Pender, is aiming to trade on the New York Stock Exchange under the ticker symbol "VG."

Venture Global's IPO is being underwritten by a syndicate of Wall Street banks led by Goldman Sachs, J.P. Morgan and BofA Securities.