LandBridge Targets $319M in US IPO with NYSE Listing

Mark Eisenberg
Photo: Finoracle.net

LandBridge Aiming to Raise Up to $319 Million in U.S. IPO

LandBridge, a significant landowner in the oil-rich Permian Basin, announced on Monday their plan to raise up to $319 million through their initial public offering (IPO) in the United States.

The company, which is backed by private equity firm Five Point Energy, controls about 220,000 surface acres in the Permian Basin. This land can be leased to oil producers, and the company also sells resources extracted from its land. This business model is largely based on fee-based contracts. This setup minimizes LandBridge's exposure to fluctuations in commodity prices. Such a strategy is critical, especially in times when geopolitical and other risks contribute to uncertainties in oil demand.

Current Market Context

Just last week, the U.S. Energy Information Administration slightly increased its forecast for oil demand growth in 2024. However, new and concerning economic data from China has tempered enthusiasm, keeping optimism in check this Monday.

IPO Details

LandBridge plans to offer 14.5 million shares, priced between $19 and $22 each. The shares will be listed on the New York Stock Exchange under the symbol "LB".

Public markets in the United States have experienced a surge in IPOs in recent months, following an almost two-year hiatus. The encouraging outlook for a soft landing for the economy is providing companies with the confidence to list their shares.

Goldman Sachs and Barclays are named as the lead underwriters for this IPO.

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Mark Eisenberg is a financial analyst and writer with over 15 years of experience in the finance industry. A graduate of the Wharton School of the University of Pennsylvania, Mark specializes in investment strategies, market analysis, and personal finance. His work has been featured in prominent publications like The Wall Street Journal, Bloomberg, and Forbes. Mark’s articles are known for their in-depth research, clear presentation, and actionable insights, making them highly valuable to readers seeking reliable financial advice. He stays updated on the latest trends and developments in the financial sector, regularly attending industry conferences and seminars. With a reputation for expertise, authoritativeness, and trustworthiness, Mark Eisenberg continues to contribute high-quality content that helps individuals and businesses make informed financial decisions.​⬤