U.S. IPO Week Ahead: New Fortress Energy Vs. Shutdown In 1-IPO Week

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Includes: NFE
by: Renaissance Capital IPO Research
Summary

Just one IPO is scheduled for the week ahead.

Liquefied natural gas (LNG) company New Fortress Energy is alone in braving the IPO market during the government shutdown, which has caused the SEC to operate with very limited staff.

It's possible that more deals launch when markets open again on Tuesday, and still price before month-end.

Just one IPO is scheduled for the week ahead.

Liquefied natural gas (LNG) company New Fortress Energy (NASDAQ:NFE) is alone in braving the IPO market during the government shutdown, which has caused the SEC to operate with very limited staff. IPO investors are watching closely to see if New Fortress can pull it off (and hoping for the government to re-open). New Fortress is pitching itself as a way to play rising demand for LNG in developing markets, and its vertical integration could help it achieve industry-leading margins. However, the company is currently unprofitable, with major projects still in the works, and full utilization of its facilities several years away.

It's possible that more deals launch when markets open again on Tuesday, and still price before month-end.

12 lock-ups are expiring this coming week. Typically 180 days after the IPO, a lock-up expiration is an event that's easy to miss, but the -20% decline from high-flying pot producer Tilray (NASDAQ:TLRY) this past week highlights the importance of tracking it.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

New Fortress Energy
New York, NY

$400M
$3,047M

$17-19
22,200,000

Morgan Stanley
Barclays

Fortress-backed owner of LNG liquefaction and regasification facilities.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.