LNG-related solutions provider Hygo looks to raise $485 million in U.S. IPO

LNG solutions firm Hygo Energy Transition Ltd, which is owned by Golar LNG, is looking to raise up to $485 million in its initial public offering, according to a regulatory filing.

Hygo plans to sell 23.1 million shares at a price range of $18-$21 apiece, according to the filing. At the higher end of the range, the company will be valued at $2.58 billion.

It is the latest among those looking to take advantage of the strong rebound in U.S. capital markets from March lows when the COVID-19 pandemic put listing plans of several private companies on hold.

Natural gas and LNG have also been investor favorites as climate concerns continue to dominate the conversation surrounding energy companies.

Hygo was formed in 2016 by Golar to develop and operate integrated LNG-based transportation, downstream solutions and other power generation infrastructure.

Golar, which currently owns a 50% stake in Hygo, will own nearly 41% of the company after its IPO.

For the six months ended June 30, Hygo’s net loss attributable to common shareholders widened to $60.8 million from $16.6 million a year earlier. Operating revenue for the same period fell more than 5% to $22.8 million.

The company plans to list on Nasdaq under the ticker symbol of “HYGO”.

Morgan Stanley and Goldman Sachs are acting as joint book-running managers for the IPO.

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