Banpu Plc has made a filing to the US Securities and Exchange Commission for an initial public Offering (IPO) of newly issued ordinary shares in BKV Corporation, its gas production flagship in the United States, on the New York Stock Exchange (NYSE).
The company reported to the Stock Exchange of Thailand on Monday that the move was in line with the resolution of its board of directors on Sept 28.
Banpu chief executive officer Somruedee Chaimongkol said the company would remain a major shareholder and controlling entity of BKV, and BKV would remain as its subsidiary on the completion date of the IPO.
The company expected the transaction would be completed next year and BKV would offer newly issued ordinary shares in the IPO to the general public, including institutional and other investors.
BKV would use fund to repay the US$75 million loan agreement with Banpu North America Corporation, a subsidiary of the company, to fund a payment of BKV's acquisition of upstream assets in Barnett Shale from Devon Energy Corp and for general corporate purposes, including the expansion of BKV's carbon capture, utilisation, and sequestration (CCUS) business.
BKV operates gas production in the Marcellus shale basin in Pennsylvania and Barnett shale basin in Texas, with a combined production capacity of 900 million cubic feet per day.