BKV Corporation Announces Pricing of Initial Public Offering

Rhea-AI Summary

BKV has announced the pricing of its initial public offering (IPO) of 15,000,000 shares of common stock at $18.00 per share. The underwriters have a 30-day option to purchase an additional 2,250,000 shares at the IPO price. Trading will begin on the New York Stock Exchange on September 26, 2024, under the ticker symbol 'BKV'. The offering is expected to close on September 27, 2024.

Citigroup and Barclays are acting as lead book-running managers, with Evercore ISI, Jefferies, and Mizuho as joint book-running managers. Several other firms are serving as senior co-managers and co-managers for the offering. The IPO is being made through a prospectus, which will be available through the underwriters and the SEC website.

Positive

• BKV is going public, potentially increasing its visibility and access to capital
• The IPO is priced at $18.00 per share, raising approximately $270 million
• Underwriters have an option to purchase additional 2,250,000 shares, potentially increasing the total raised
• The company will be listed on the prestigious New York Stock Exchange

Negative

• The IPO may lead to dilution of existing shareholders' ownership
• The company will face increased scrutiny and reporting requirements as a public entity
• Market volatility could affect the stock price post-IPO

Insights

Financial Analyst

BKV 's IPO pricing at $18.00 per share for 15 million shares is a significant event in the energy sector. This offering could raise up to $270 million, potentially increasing to $310.5 million if the underwriters exercise their option. The IPO's success will be closely watched as an indicator of investor appetite for energy companies, particularly those in the natural gas space.

The involvement of major underwriters like Citigroup and Barclays lends credibility to the offering. The diverse group of book-running managers and co-managers suggests broad market interest. Investors should note that BKV's listing on the NYSE under the ticker "BKV" will provide liquidity and visibility for the stock.

While the IPO pricing is known, potential investors should carefully review the prospectus for detailed financial information, risk factors and growth strategies before making investment decisions. The energy market's volatility and regulatory environment will be key factors in BKV's future performance.

DENVER--(BUSINESS WIRE)-- BKV Corporation (“BKV”) today announced the pricing of its initial public offering of 15,000,000 shares of its common stock at $18.00 per share. The underwriters will have a 30-day option to purchase an additional 2,250,000 shares from BKV at the initial public offering price, less underwriting discounts and commissions. The shares will begin trading on the New York Stock Exchange on September 26, 2024 under the ticker symbol “BKV,” and the offering is expected to close on September 27, 2024, subject to customary closing conditions.

Citigroup and Barclays acted as lead book-running managers for the offering. Evercore ISI, Jefferies and Mizuho acted as joint book-running managers. KeyBanc Capital Markets, Susquehanna Financial Group, LLLP, TPH&Co., the energy business of Perella Weinberg Partners, and Truist Securities acted as senior co-managers. Citizens JMP and SMBC Nikko acted as co-managers for the offering.

The offering is being made only by means of a prospectus. When available, copies of the final prospectus relating to the offering may be obtained from: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by telephone at (800) 831-9146; or Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by email at barclaysprospectus@broadridge.com or by telephone at (888) 603-5847.

To obtain a copy of the prospectus free of charge, visit the Securities and Exchange Commission’s (“SEC”) website, www.sec.gov, and search under the registrant’s name, “BKV Corporation.”

A registration statement relating to the offering was declared effective by the SEC on September 25, 2024. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About BKV Corporation

Headquartered in Denver, Colorado, BKV Corporation (BKV) is a forward-thinking, growth-driven energy company focused on creating value for its stockholders. BKV’s core business is to produce natural gas from its owned and operated upstream businesses. BKV (and its predecessor entity) was founded in 2015, and BKV and its employees are committed to building a different kind of energy company. BKV is one of the top 20 gas-weighted natural gas producers in the United States and the largest natural gas producer by gross operated volume in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or our future financial or operating performance and include statements regarding the expected size, timing and results of the initial public offering. When used in this press release, words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “budget,” “plan,” “seek,” “envision,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” “will,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in BKV’s prospectus. BKV undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240924740724/en/

Becky Escott

BKV Corporation

media@bkvcorp.com

Source: BKV Corporation

FAQ

When will BKV (BKV) start trading on the New York Stock Exchange?

BKV (BKV) is scheduled to begin trading on the New York Stock Exchange on September 26, 2024.

How many shares is BKV offering in its IPO?

BKV is offering 15,000,000 shares of common stock in its initial public offering, with an option for underwriters to purchase an additional 2,250,000 shares.

What is the IPO price for BKV (BKV) shares?

The initial public offering price for BKV (BKV) shares is set at $18.00 per share.

Who are the lead book-running managers for BKV 's IPO?

Citigroup and Barclays are acting as the lead book-running managers for BKV 's initial public offering.