Shares of the liquefied natural gas exporter tumbled 17% on Monday, bringing its losses to 20% from its $25 apiece offer price last week. The company’s choppy start as a publicly-traded company came after it the IPO price range by more than 40% after investors approached during the marketing wanted a lower range.
The drop after a challenged IPO shows that investors remain diligent in valuing shares of companies without track records as performers on public exchanges. The debut, which saw the stock fall 4%, was the worst opening session for a company whose first-time share sale raised more than $1 billion in the US since Birkenstock Holding Plc in October 2023. The cork-soled sandal maker’s shares slumped about 13% in its debut before extending a three-day streak to drop 21%.
For Venture Global, the slide — coming amid a broader market selloff — sets up a rough path to rewarding the IPO buyers, who would need the shares to rally 25% to break even. It took Birkenstock seven weeks before it reclaimed the $46 level where it initially sold shares.
The poor performance stands in contrast to other recent debutants, whose stocks have continued to perform well. Shares of Flowco Holdings Inc., an oil field services company, are up 20% from a debut earlier this month while home repair software business ServiceTitan Inc. has held steady, delivering a 39% gain for those who backed the IPO in December.
Share This:
More News Articles
