Thai Coal Producer Banpu’s Unit Closes Flat In New York Debut After Raising $270 Million From IPO

Shares of BKV Corp—a unit of Thailand’s billionaire Vongkusolkit family-led Banpu—closed flat in its trading debut on Thursday in New York after raising $270 million from its IPO that was priced at a discount to its indicative price.

The Denver, Colorado-based company—one of the largest gas producers in the U.S.—sold 15 million shares at $18 apiece during the IPO, below the indicative price range of between $19 to $21 each.

"The low IPO price is probably meant to offer a certain discount to investors so that they could have some upside after stock debut," said Suppata Srisuk, energy analyst at Bualuang Securities in Bangkok.

BKV shares closed flat at the IPO price on Thursday in New York after trading as high as $18.88 apiece intraday.

"The company considers the $18 price appropriate, reflecting the timing, opportunities, and current economic conditions,” a spokesman for Banpu said in reply to Forbes Asia’s request for comments. “The offering was fully subscribed, with pricing designed to balance the IPO price and support long-term stock performance, while also positioning for future upside potential."

Banpu said the IPO will serve as a benchmark for BKV’s true value, unlocking Banpu’s investment value. Based on the IPO price, BKV’s market capitalization is about $1.5 billion. “BKV will gain access to capital through the IPO and future fundraising opportunities, supporting its continued growth,” the Banpu spokesman added.

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Upon completion of the IPO, Banpu’s effective shareholding in BKV will be diluted from 92.9% to approximately 75.9%. BKV—which also owns and operates power plants in Texas—plans to use most of the IPO proceeds to repay existing debt and finance business expansion.

“BKV plays a key role in our natural gas strategy to provide lasting benefits for customers, investors, and stakeholders,” Sinon Vongkusolkit, CEO of Banpu, said in a separate statement. “We’re proud and excited to take this significant step forward for the company as we are committed to driving decarbonization goals towards sustainable growth across our business lines.”

Banpu is controlled by the Vongkusolkit family, which also has interests in privately held Mitr Phol Group, one of Asia’s largest sugar producers, and listed property developer Erawan Group, which has over 70 hotels under different brands, including Grand Hyatt. With a net worth of $1.25 billion, the family was ranked No. 24 in the latest Thailand’s Richest list that was published in July.