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Venture Global, a US-based energy company, has entered the public market with an initial valuation slightly exceeding $60 billion, a significant reduction from its previously ambitious aim of over $100 billion. The IPO was priced at $25 per share, bringing in $1.75 billion, as stated in recent announcements. Earlier this month, the company had ambitions of reaching a valuation as high as $110 billion—surpassing even oil giant BP—before making last-minute adjustments to their offering.
Insiders familiar with the transaction noted that the scale and timing of these changes point to investors’ wariness about high valuations in the US stock market, despite an upcoming surge of IPOs being organized by Wall Street bankers.
A potential investor recounted a conversation with Venture Global’s bankers, who tried to justify their high pricing strategy. “Initially, I wasn’t convinced, but they tried to make it seem like I was the only one with doubts, suggesting other investors were fine with the higher multiples. Classic gaslighting,” the investor commented.
Cole Smead, CEO of Smead Capital Management, which has around $1.5 billion invested in oil and gas but opted out of the Venture Global IPO, remarked on the challenging nature of raising capital in public markets for energy companies.
When asked for comment, Venture Global opted to stay silent.
This announcement follows President Donald Trump’s recent directive to resume licensing LNG terminals, effectively overriding a pause set during Joe Biden’s presidency—an action that stirred controversy among oil industry leaders.
Venture Global has fostered strong relationships with the new administration. In April, CEO Mike Sabel attended an exclusive dinner for oil and gas execs at Mar-a-Lago, where Trump reportedly solicited $1 billion in campaign contributions in exchange for undoing certain environmental policies. The company had previously donated $1 million to Trump’s inauguration fund.
Sabel and co-founder Robert Pender, who hold 84% of the company’s shares, are noted for their innovative approach to building LNG facilities using modular construction. This method allows most of the prefabrication work to be done off-site, significantly reducing expenses and cutting down on project timelines.
The company, known for disrupting the traditional LNG industry model, has typically built strong foundations through long-term supply contracts. However, when the Ukraine conflict sent LNG prices soaring in 2022, Venture Global controversially opted to sell on spot markets instead of honoring these contracts. This move led Shell, BP, and several other foundational customers to file arbitration claims totaling $5 billion, accusing the company of abandoning long-standing agreements to capitalize on the volatile market.
Operating two LNG terminals along the US Gulf coast, Venture Global maintains that no contracts were violated.
Key players like Goldman Sachs, JPMorgan, and Bank of America served as joint bookrunners for Venture Global’s IPO.
