LANDBRIDGE ANNOUNCES CLOSING OF INITIAL PUBLIC OFFERING AND CONCURRENT PRIVATE PLACEMENT AND FULL EXERCISE OF THE UNDERWRITERS’ OPTION TO PURCHASE ADDITIONAL SHARES

Rhea-AI Summary

LandBridge Company has successfully closed its initial public offering (IPO) of 14.5 million Class A shares at $17.00 per share, generating around $270.9 million in net proceeds. Additionally, underwriters fully exercised their option to purchase an extra 2.175 million shares. The Class A shares, trading under the ticker 'LB' on the NYSE since June 28, 2024, were also sold to an accredited investor in a concurrent private placement of 750,000 shares at the same price. Leading managers for the offering included Goldman Sachs and Barclays, among others. This financial move is expected to bolster LandBridge's capital base significantly.

Positive

• LandBridge raised approximately $270.9 million in net proceeds from its IPO and concurrent private placement.
• Underwriters fully exercised their option to purchase an additional 2.175 million shares, indicating strong demand.

Negative

• The issuance of 17.425 million shares in total could lead to potential dilution for existing shareholders.

Insights

Financial Analyst

The successful closing of LandBridge's initial public offering (IPO) and concurrent private placement is significant for multiple reasons. First, the company raised approximately $270.9 million, indicating strong investor interest and confidence. This capital could be instrumental in funding future growth initiatives, paying down debt, or expanding operational capabilities. Additionally, the full exercise of the underwriters' option to purchase additional shares often signals robust demand, which can positively impact stock performance in the short term.

The strong backing from leading financial institutions such as Goldman Sachs and Barclays further adds credibility to the IPO. These banks' involvement suggests thorough due diligence and a vote of confidence in LandBridge's business model and market potential. The concurrent private placement, typically reserved for institutional investors, underscores further commitment from key stakeholders who may have insider knowledge or strategic interests.

However, investors should also consider the dilution effect of the additional shares on existing shareholders. While the immediate influx of capital is beneficial, increased shares can dilute earnings per share (EPS) in the short term. Long-term prospects will depend on how effectively LandBridge utilizes the raised capital to generate sustainable growth and profitability.

Market Research Analyst

From a market perspective, LandBridge’s entry onto the New York Stock Exchange under the ticker symbol 'LB' is an important step. Listing on a major exchange like the NYSE increases visibility and can attract a broader investor base, including institutional investors. This could lead to increased trading volumes and potentially more stable stock prices in the long term. The offering price of $17.00 per share will be a critical benchmark to watch as it often sets the tone for initial trading activities.

It is also worth noting the broader market conditions during the IPO. If the overall market sentiment is bullish, LandBridge could benefit from a positive spillover effect, leading to a strong debut performance. Conversely, bearish market conditions could result in initial volatility and pressure on the stock price.

For retail investors, understanding the specific market dynamics and the competitive landscape in which LandBridge operates will be key to making informed decisions. The fact that prominent book-runners and co-managers are involved suggests thorough market analysis and strategic placement, which can bode well for future stock performance.

HOUSTON--(BUSINESS WIRE)-- LandBridge Company LLC (“LandBridge”) closed its initial public offering of 14,500,000 Class A shares representing limited liability company interests (“Class A shares”) at a price to the public of $17.00 per Class A share. In addition, the underwriters have exercised in full their 30-day option to purchase an additional 2,175,000 Class A shares at the public offering price, less underwriting discounts and commissions. The Class A shares began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “LB” on June 28, 2024. In addition to the Class A shares sold in the offering, LandBridge sold 750,000 Class A shares at a price of $17.00 per Class A share in a concurrent private placement to an accredited investor (the “concurrent private placement”). The sale of the Class A shares in the concurrent private placement are exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D promulgated thereunder.

LandBridge received net proceeds of approximately $270.9 million from the offering and concurrent private placement, after deducting underwriting discounts and commissions, placement agent fees and offering expenses.

Goldman Sachs & Co. LLC and Barclays acted as lead book-running managers for the offering. Additional book-running managers for the offering were Wells Fargo Securities, Citigroup, Piper Sandler and Raymond James. Janney Montgomery Scott, Johnson Rice & Company, Pickering Energy Partners, Texas Capital Securities, and Roberts & Ryan acted as co-managers for the offering. Goldman Sachs & Co. LLC also acted as the placement agent for the concurrent private placement.

A registration statement relating to the Class A shares offered in the initial public offering has been filed and was declared effective by the U.S. Securities and Exchange Commission on June 27, 2024 (the “Registration Statement”). The offering of these securities was made only by means of a prospectus that meets the requirements of Section 10 of the Securities Act of 1933, as amended. Copies of the prospectus related to these securities can be obtained from any of the following sources:

Goldman Sachs & Co. LLC
Attention: Prospectus Department
200 West Street
New York, NY 10282
Telephone:(866) 471-2526
prospectus-ny@ny.email.gs.com

Barclays Capital Inc.
Attention: Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Telephone: (888) 603-5847
barclaysprospectus@broadridge.com

About LandBridge

LandBridge owns approximately 220,000 surface acres across Texas and New Mexico, located primarily in the heart of the Delaware sub-basin in the Permian Basin, the most active region for oil and natural gas exploration and development in the United States. LandBridge actively manages its land and resources to support and encourage oil and natural gas production and broader industrial development. Since its founding in 2021, LandBridge has served as one of the leading land management businesses within the Delaware Basin. LandBridge was formed by Five Point Energy LLC, a leading energy private equity firm with a successful track record of investing in and developing energy, environmental water management and sustainable infrastructure companies within the Permian Basin.

Important Information

The Registration Statement may be obtained free of charge at the SEC’s website at www.sec.gov under “LandBridge Co LLC.” This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240701132935/en/

Daniel Yunger / Jon Morgan / Nathaniel Shahan

Kekst CNC

kekst-landbridge@kekstcnc.com



Scott McNeely

Chief Financial Officer

LandBridge Company LLC

832-703-1433

Scott.mcneely@landbridgeco.com

Source: LandBridge Company LLC

FAQ

What was the price per share for LandBridge's IPO?

The price per share for LandBridge's IPO was $17.00.

How many Class A shares did LandBridge offer in its IPO?

LandBridge offered 14.5 million Class A shares in its IPO.

What is the total number of additional shares purchased by underwriters in LandBridge’s IPO?

Underwriters purchased an additional 2.175 million Class A shares.

When did LandBridge's Class A shares start trading on the NYSE?

LandBridge's Class A shares began trading on the NYSE on June 28, 2024.

How much did LandBridge raise in its IPO and private placement?

LandBridge raised approximately $270.9 million in net proceeds from its IPO and concurrent private placement.

What is the ticker symbol for LandBridge’s Class A shares?

The ticker symbol for LandBridge’s Class A shares is 'LB'.

Who were the lead book-running managers for LandBridge's IPO?

The lead book-running managers for LandBridge's IPO were Goldman Sachs and Barclays.