On Tuesday at 10:20 AM (Bangkok time), the share price of Banpu Public Company Limited (SET: BANPU) rose by 6.40% or THB 0.40 to THB 6.65, with a trading value of THB 908.40 million.
BANPU announced via the Stock Exchange of Thailand (SET) on Monday that BKV Corporation (BKV), BANPU’s subsidiary, has launched the initial public offering (IPO) of 15,000,000 shares of its common stock. The IPO price is expected to be between USD19.00 and USD21.00 per share. The shares have been approved for listing on the New York Stock Exchange (NYSE) under the ticker symbol “BKV”.
Trinity Securities anticipates that the announcement will generate positive sentiment for BANPU, as they foresee it unlocking the value of the company’s natural gas business in the United States.
KGI Securities has highlighted that BKV primarily operates as a natural gas producer, positioning itself as one of the top 20 natural gas producers in the U.S. and the largest natural gas producer in Barnett Shale, Texas. BKV has launched an initial public offering (IPO) consisting of 15,000,000 shares of common stock, priced between USD19.00 and USD21.00 per share.
As part of the IPO, underwriters will have the greenshoe option to acquire an additional 2,250,000 shares from BKV within 30 days, starting on the first trading day post the IPO completion. The activation of this option would result in BANPU reducing its ownership stake in BKV from 93% to 76% or 74%.
The analyst views BKV’s debut on the NYSE as a positive development, as it is expected to enhance BANPU’s stock price to better showcase BKV’s value. Despite this optimistic outlook, KGI Securities maintains a ‘Hold’ recommendation for BANPU and sets a target price of THB 6.00 per share for 2024.
