US liquified natural gas (LNG) exporter Venture Global is set to benefit from Trump’s new energy agenda when it lists on NYSE Friday. The company hopes to raise $2.64 billion in what will be one of the largest energy IPOs in years that could end up valuing Venture Global at up to $110 billion.
Venture Global already operates two LNG export terminals in Louisiana while its third terminal CP2 is awaiting a final set of approvals from the Department of Energy. The company has received necessary documents from the Federal Energy Regulatory Commission but hasn’t been able to pass the last hurdle as a change in regulation under President Biden forced the US LNG industry to slow down over research into its environmental impact.
This week President Trump signed a slew of executive orders including declaring a ‘national energy emergency’ which will give him the authority to override environmental restrictions on energy infrastructure put in place in early 2024. Trump has also issued an order for the US to resume processing export permit applications for new LNG projects to Europe and Asia.
The new president’s declared “Drill baby, drill!” approach will work in favour of energy companies such as Venture Global’s future, but there is also some scope for environment-related legal challenges including difficulty passing environmental assessments. US domestic politics will be the space to watch.
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Shein IPO moves closer
Clothing e-commerce giant Shein is moving closer to listing in London in the first half of this year and is eyeing dates around Easter, which falls on 20 April. If the listing goes ahead, the fast-fashion business could end up taking a place among the top 20 companies listed in London based on its reported current market valuation of between $50 and $66 billion.
Shein is backed by General Atlantic, Tiger Global Management, and Sequoia Capital and has a roster of banks including UBS and Barclays working on its float.
Funded in China but now based in Singapore, Shein needs regulatory approval from both Britain and China to list in the UK. The Financial Conduct Authority is unlikely to block a London listing of this size particularly after a dearth of large IPOs over the last few years.
The FCA’s Chief Executive has already said that he is not the regulator of “every aspect of corporate behaviour” as human rights groups raised concerns over Shein’s supply chain. Popular with Gen-Z buyers because of its cheap prices and its ability to stay on trend at a much higher speed than its competitors, the e-commerce firm still raises some red flags over the ethics of its supply chain.
RC Fornax to list on AIM in early February
UK defence industry consultancy RC Fornax plans to raise £5 million when it lists on AIM in early February, which it will use to grow the business and develop an advanced AI tool.
The Bedford-based company founded by two Air Force veterans generated £6.5 million in revenue last year and EBITDA of £900,000.
The mission of RC Fornax is to challenge larger, slow-moving companies in defence consulting by offering a wider range of expertise and capabilities, with an initial focus on systems, software and hardware engineering. The specialist consulting firm provides bespoke project teams for each of its customers which include ten blue-chip companies.
RC Fornax has not yet set out a share price or expected market cap. Strand Hanson is the company’s nominated advisor and Cavendish Capital Markets Ltd its broker.
