Banpu⁣ Public ⁣Company ​Limited⁤ (BANPU) Sees ⁤Stock Price Rise After BKV Corporation Announces ⁤IPO

BANPU’s stock price increased by 4.80% after ⁤its subsidiary, BKV Corporation, announced an initial ⁣public offering‌ (IPO) of 15⁢ million shares on the New York Stock Exchange (NYSE).

Asia ‌Plus Securities believes that BKV’s listing on the NYSE will not affect fundamental estimates, as it ​is part of the process ⁣of raising‌ funds to repay debt. However, it may ⁣create a short-term buzz ‌that will stimulate the stock prices of parent companies like BANPU.

BANPU’s stock price ‍movement was 6.55 baht plus 0.30 baht or ‌4.80% during the day, with a trading value of 1,364.65 million baht.

BKV Corporation’s‌ IPO Details

BKV Corporation, a subsidiary of BANPU, has announced an initial⁣ public offering of 15‍ million shares on the NYSE, with an initial offering price range ⁣of $19-21 per share. The company plans to use ⁣the proceeds from ‍this‍ fundraising mainly to⁢ repay existing loan ​debt and invest ‍in CCUS (Carbon Capture) projects.

BKV has‌ filed for listing on the NYSE since November 2022, ​and the IPO is part of BANPU’s plan to raise funds to repay loans and expand investment for further growth.

After ⁤the completion of the IPO, BANPU’s stake in BKV will‍ be​ reduced to⁣ approximately 74-76%.

BKV’s main⁢ assets⁤ include natural gas business, power‍ plants, CCUS, and ‍others.

BKV Corporation’s Operating ⁣Results

For the first ⁤half of 2024, BKV’s operating results​ showed a ‌net loss of $98.3 ⁢million. However, the company’s operating results for 2023 were a net profit of $116.9 million, down from $410.1 million in⁢ 2022.

At the end of Q2/67, BKV’s asset value ‍was $2.2 billion. ‍Although the current ‍price of ⁢natural gas is‍ close to the break-even point, ​the ‍long-term picture​ is expected to show progress in both‌ winter seasons ​and⁣ the​ general economy in the‌ United States.

This will help support⁣ the gas business and power station, ⁤bringing BKV’s overall operating results back ⁣to⁤ profit.