IPO News: What to look for when Excelerate Energy goes public next week

After slowing down in the early weeks of the year, IPO activity started picking up despite lingering pandemic concerns and uncertainties related to the Russia-Ukraine war. Nearly two months after revealing its decision to go public, LNG shipping company Excelerate Energy, Inc. this week said it is planning to offer around 16 million shares.

The equities will be offered in the range of $21 per share to $24 per share in an initial public offering that is tentatively scheduled for early next week. The stock is expected to trade on the New York Stock Exchange under the ticker symbol EE. The group of book-runners will be led by Barclays, JP Morgan, and Morgan Stanley.

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At the mid-point of the price range, the offering will generate net proceeds of about $360 million, of which around $281 million will be used for funding growth initiatives like the development of the Bahia Regasification Terminal in Brazil and the Vlora LNG Terminal in Albania.

Competitive Edge

The Woodlands, Texas-based company has been expanding its footprint in the energy market constantly and looks to leverage its expertise in the downstream segment of the LNG value chain to gain an edge over bigger players like BP, Shell, and Exxon Mobil Corporation (NYSE: XOM). The focus remains on enabling LNG producers to expand the reach of their supply beyond traditional markets.

Continuing its expansion drive, Excelerate has embarked on a feasibility study in Albania along with ExxonMobil, to develop the LNG terminal, power generation facilities, and pipeline interconnections required to make the importation of LNG viable.

Last year, the demand for electricity rebounded strongly across the globe — around 6% year-over-year. The growth is expected to accelerate going forward, which bodes well for Excelerate, given the significant role LNG plays in power generation. The company has developed or operated 15 LNG import terminals and carried out 2,200 ship-to-ship transfers, with more than 40 LNG operators.

Key Numbers

In the fiscal year ended December 2021, the company reported total revenues of $888.56 million, which is more than double the revenue generated in the previous year. Net income increased to $41.12 million in fiscal 2021 from $38.75 million in the prior year.

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Read management/analysts’ comments on quarterly reports

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Founded by George Kaiser in July 2003, Excelerate is currently led by chief executive officer Steven Kobos who has nearly three decades of experience working on complex energy and infrastructure development projects.