(Reuters) -Shares of BKV rose 3.1% in their debut on the New York Stock Exchange on Thursday, giving the U.S. natural gas producer a market capitalization of $1.56 billion.
The beginning of the U.S. Federal Reserve’s long-awaited interest rate-cutting cycle has opened a window of opportunity for companies looking to list their shares. Some are also accelerating their plans to avoid uncertainty stemming from the presidential elections in November.
BKV’s shares opened at $18.55 in their debut, compared with the initial public offering price of $18.
The company has raised $270 million by selling 15 million shares in its IPO for $18 each, below the targeted range of $19 to $21 it had marketed earlier.
EQT, the biggest U.S. natural gas producer, plans to increase natural gas production in October and November as demand for the fuel and prices increase, it said on Wednesday.
U.S. natural gas producers planned to curtail production in the second half of 2024 as gas prices had collapsed to multi-year lows.
BKV was among the natgas producers hard hit by lackluster prices over the last two years as oil companies that pump gas as a byproduct boosted supplies and sent prices in west Texas, Arizona and California into negative territory.
BKV obtained funding commitments last year from its Thai parent Banpu Plc to meet financial obligations till June 30, 2025, after it could not comply with some lenders’ conditions.
The company first filed for an IPO in 2022, but had to shelve its plans as gas prices collapsed.
Banpu will own about 75.9% stake in BKV after the offering.
Citigroup and Barclays are the lead book-running managers for the offering.
(Reporting by Vedant Vinayak Vichare; Editing by Devika Syamnath and Shailesh Kuber)
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