IPO highlights investors’ US shale hesitancy

Vine Energy’s financing efforts reveal lingering public market doubts despite healthy prospects for gas

Last week’s initial public offering by US gas producer Vine Energy may have been the first of its kind in the shale patch for over four years. But it also served as an important litmus test for onshore investor confidence. The Haynesville pure-play producer, backed by private equity firm Blackstone, successfully raised $301mn through the sale of 21.5mn shares priced at $14 each. But the share price fell below the expected $16-19 range, forcing the company to offload another 2.8mn shares to break through the $300mn ceiling. “The somewhat muted interest shows investors are still cautious of the risks involved and focused on free cash flow (FCF), meaning other privates looking to an IPO, especi