Money losing natgas producer BKV revives US IPO
Adds valuation in paragraph 2, background in paragraph 4
By Niket Nishant and Arathy Somasekhar
Sept 16 (Reuters) -Loss-making natural gas producer BKV Corp BKV.N said on Monday it aims to raise up to $315 million through an initial public offering of shares, nearly two years after first filing to sell shares publicly.
BKV will offer 15 million shares priced between $19 and $21 each, the company said, aiming for a valuation of up to $1.77 billion in the IPO, according to its amended filing on Monday.
Rate cut expectations and a recent rise in U.S. natural gas prices from more than 30-year inflation adjusted lows have opened a window of opportunity for companies waiting to list their shares.
The company was among U.S. natural gas producers hard hit by lackluster natural gas 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 had cash and cash equivalents of $9.2 million at the end of the first half of this year, compared with $22.4 million of cash and cash equivalents, a year earlier.
It posted a net loss of $98.3 million in the first half of the year, compared with a profit of $60.8 million in the same period in 2023.
The Denver-based company, which has operations in Texas' Barnett shale and Pennsylvania's Marcellus shale, plans to use about $230 million of its net proceeds from the IPO to repay debt and the remaining for capital expenditure and general corporate purpose, according to its filing with market regulators.
The company will be listed on the New York Stock Exchange under the symbol "BKV."
Citigroup and Barclays are the lead book-running managers for the offering. Neither were available for immediate comment.
Citi will reserve up to 5% of the shares on offer for sale to some of BKV's employees, associates and directors at the IPO price. Such shareholders will be subject to lock-up periods ranging from 60 to 180 days.
Reporting by Niket Nishant in Bengaluru; Editing by Tasim Zahid
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