Markets

Blackstone-backed Vine Energy makes debut below offer price in market

By Chitranshi Agarwal

On Thursday, shares of Vine Energy Inc fell 2% in their market debut. This came after the Blackstone-backed natural gas explorer failed to impress investors in what was the first initial public offering by a U.S. shale producer since 2017.

The uninspiring debut underlines a lack of investor positivity towards the shale industry, despite oil and natural gas prices bounced back from last year when they crashed due to COVID-19.

Vine Energy’s stock opened at $13.75 per share, giving the company a valuation of $952.7 million.

The stock’s opening trade is a rare departure from the trend of eye-popping stock market debuts as the U.S. capital markets enjoy a record run. Tech heavyweights Coupang Inc, Roblox Corp, and Airbnb all surged in their market debuts.

On Wednesday, Vine Energy priced its offering of 21.5 million shares at $14 per share, below the expected range. The company raised $301 million in its IPO.

Vine Energy earlier reported a pro forma net loss of $98.3 million on total revenue of $378.7 million for the year ended Dec. 31, 2020.

Tags: Blackstone COVID-19 Vine Energy Vine Energy Inc

Chitranshi Agarwal

Chitranshi Agarwal is a Journalism and Mass Communication graduate. She has worked as a Content Writer, Social Media handler and RJ. She is currently working as a journalist at USANewshour.com. She is reachable at chitra98ag@gmail.com.