Reuters: IPOX® CEO Schuster on on Venture Global IPO Float and Energy Sector Premiums

IPOX® CEO Josef Schuster was quoted in a recent Reuters article, "Venture Global debut to test appetite for energy IPOs after Trump's policy pivot", offering his expert analysis on Venture Global's market debut and the broader energy IPO landscape.

The article highlights LNG shipping firm Venture Global's IPO, which launches after a significant valuation cut from around $110 billion to $60.5 billion. While still a substantial listing, the article points out the challenges faced in achieving initially high valuations and the testing ground this IPO represents for the energy sector, particularly under a Trump administration prioritizing energy output.

Josef provided valuable commentary on two key aspects of the Venture Global IPO. Firstly, he drew attention to a "less talked about issue" – the "extremely low float" of the deal. As quoted by Reuters, Josef stated this "is highly unusual and presents a significant risk factor due to overhang down the road." This highlights a potential concern regarding the limited number of shares available for public trading and the potential for future market impact.

Secondly, Josef addressed the broader trend of valuation premiums in the energy sector. He noted that "For energy and LNG companies, as we are seeing with Venture Global, achieving those very high premiums at IPO is proving more challenging, particularly when measured against established public market peers." This reinforces the point that while there's optimism for energy IPOs, companies need to be realistic about valuations in the current market, especially when compared to established public companies.

Read the full article here: https://www.reuters.com/markets/deals/venture-global-debut-test-appetite-energy-ipos-after-trumps-policy-pivot-2025-01-24/