Excelerate to raise up to $384 million in IPO

A man watches as an LNG tanker passes through the Suez canal. (Photo: Reuters.)

Excelerate Energy plans to raise up to $384 million through the offering of 16 million Class A common shares priced between $21 and $24 each. The company said it also intends to grant the underwriters a 30-day option to purchase up to an additional 2.4 million shares at the IPO price, less underwriting and discounts.

If all shares sell out at $24 each, Excelerate would have 24.4 million outstanding Class A shares and 81.5 million Class B shares, which would give it a market capitalization of about $2.5 billion. Excelerate also said it intends to list its common stock on the New York Stock Exchange under the symbol EE. After fees and commissions, Excelerate said it hoped to net about $341 million.

Excelerate Energy is a US-based LNG company located in The Woodlands, Texas. Founded in 2003 by George B. Kaiser, Excelerate offers a full range of flexible regasification services from FSRU to infrastructure development to LNG supply. 

“We have grown our business significantly since our first floating storage and regasification unit (FSRU) charter in 2003, and today, we are a profitable energy company with a geographically diversified business model,” the company said in a filing with the U.S. Securites and Exchange Commission.

For the years ending 2021 and 2020, the company generated $468 million and $431 million from its FSRU and terminal service businesses, about 53% and 100% of revenue for those years. 

The company also procures LNG from producers and sells regasified natural gas through its flexible LNG terminals. For the year ending Dec. 31, 2021, the company generated nearly $431 million from LNG and natural gas sales, about 47% of its revenue for the year, Excelerate said in the filing.

The company has offices in Abu Dhabi, Antwerp, Boston, Buenos Aires, Chattogram, Dhaka, Doha, Dubai, Manila, Rio de Janeiro, Singapore, and Washington, DC.

Barclays, J.P. Morgan, and Morgan Stanley are serving as joint lead book-running managers for the offering. Wells Fargo Securities is also acting as a book-running manager, Excelerate said.