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7 Things to Know About the Upcoming $2.5 Billion Excelerate Energy (EE) IPO

Published 04/05/2022, 05:58 AM
© Reuters.
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Excelerate Energy, Inc. (EE) is set to launch its U.S. IPO next week. Excelerate Energy, Inc. provides flexible liquefied natural gas (LNG) solutions to emerging markets in diverse environments across the globe, providing a lesser emitting form of energy to markets that often rely on coal as their primary energy source. Below are 7 important facts to focus on into the IPO:

1. Excelerate Energy, Inc. IPO Timing: Excelerate Energy, Inc. is expected to have its IPO on the NYSE on April 13, 2022. The stock ticker is 'EE'. Normally IPOs on the NYSE began trading between 10AM-2PM ET.

2. Excelerate Energy, Inc. IPO Price: The company anticipates the initial public offering price to be between $21.00 and $24.00.

3. Shares Offered: The company is offering 16,000,000 shares of its Class A common stock, with the underwriters being granted an option to purchase additional 2,400,000 shares of Class A common stock. There will be 24,377,778 shares of Class A common stock (or 26,777,778 shares of Class A common stock if the underwriters exercise their option to purchase additional shares of Class A common stock in full) and 81,497,778 shares of Class B common stock, outstanding following the offering.

4. Excelerate Energy, Inc. IPO Valuation: A pricing at the midpoint of the range would value the company at around $2.5 billion.

5. IPO Underwriters: Barclays (LON:BARC), J.P. Morgan, and Morgan Stanley (NYSE:MS) are acting as joint lead book-running managers, Wells Fargo (NYSE:WFC) Securities as a book-running manager, and Raymond James, Stephens Inc., Tudor, Pickering, Holt & Co., SMBC Nikko, and BOK Financial Securities, Inc. as co-managers for the offering.

6. Important Financials: FSRU and terminal services revenues rose 9% to $468.0 million for the year ended December 31, 2021, as compared to $430.8 million for the year ended December 31, 2020. Gas sales revenues were $420.5 million for the year ended December 31, 2021, as a result of LNG and natural gas sales that occurred in 2021 related to the companys terminal operations in Bangladesh and Brazil. No natural gas or LNG was sold during 2020 due to the companys decision to pursue long-term sales contracts in the New England market.

7. Total Addressable Market (TAM): Structural global LNG demand is expected to rise an average of 2.3% per year from 2022 to 2025, reaching 401 MT. According to Bloomberg NEFs Global LNG Market Outlook 2021-25, emerging Asian markets account for more than half the expected demand growth. Over the next five years, South and Southeast Asia, Pakistan, Bangladesh, and Thailand will represent key growth markets as domestic production declines.

By Davit Kirakosyan

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