Venture Global Faces Investor Scrutiny Over IPO Valuation

Venture Global LNG has reduced the valuation of its upcoming U.S. initial public offering (IPO) by almost half after potential investors expressed concerns over the company's long-term profitability in exporting liquefied natural gas (LNG). Originally seeking a valuation as high as $110 billion, Venture Global lowered its upper guidance to $65 billion. The Arlington, Virginia-based company, which is the second-largest exporter of LNG in the U.S., stands to benefit from policies expected to support oil and gas under President Donald Trump's administration. However, investors were wary about whether Venture Global could achieve earnings to justify the initial IPO price. The revised offering includes additional shares to fill the fundraising gap created by the lower valuation. The IPO aims to raise up to $1.9 billion, valuing the company among the top U.S. energy firms by market capitalization if priced at the upper range. The timing is strategic, coinciding with Trump's second term, during which oil and gas policies could be favorable. Despite these possibilities, ongoing litigation surrounding non-fulfilled long-term contracts clouds the IPO's future. Critics question the outcome, noting that the company could cancel the IPO if unfavorable valuations persist. Proceeds are intended for general corporate purposes and potential future LNG projects. Venture Global's expansion plans and dependence on external market factors illustrate both potential and inherent risks in this complex offering.