Blank-check Company Raises $480 Million in IPO

Vantage Energy Acquisition was a firm initially called Vantage Energy. It works in the oil and gas sector of the energy industry. This company primarily deals with the exploration, development, and acquisition of potential oil and gas natural sources in the United States. Currently, it is led by former CEO of Vantage Energy Roger J. Biemans. The corporation publicly stated that it was still unsure concerning its next plans since it was formed from an acquisition. In a press release, the company said: “We have not selected any business combination target, and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target.”

Other firm administrators after the acquisition include Tom Byree Jr. who is the President and CFO, John J. Moran who serves as Vice President in charge of Operations, W. Worth Carlin who is the Vice President in charge of Land and Mike L. Hopkins serving as Vice President in charge of the firm’s Midstream sector.

The company had its Initial Public Offering on April 10th making it the first oil and gas company this year to have its release in the second quarter of 2017 fiscal. The share price for the issuance was $10 with 48 million shares being sold during the exercise. As such, the firm generated $480 million from the offering of the stock. Notably, share sales were not made in the usual manner where one share is a single unit of common stock. Rather, the price of $10 gave a prospective buyer access to the enterprise’s class A of common stock as well as to a third of warranty. In this way, an investor purchasing three shares would have three units of the company’s class A stock and one warranty. Warranties give investors the ability to buy more Class A shares at the fixed price of $11.50 which could turn out to be an added advantage if the stock increases in value to costs above $11.50.

This firm believes that it has an additional benefit in the North America energy market since it operates in some of the most unconventional but rewarding oil reserves. The company has operations in the Marcellus Shale and Barnett Shale where firm representatives believe oil is highly concentrated. Further, Vantage Energy cites their consistency in oil production as being able to aid them in profiling each well for long-term productivity. As such, each mine has a timeline worked towards it based on previous explorations and ongoing mining and extraction activities. This enables the oil to be produced at a predictable rate which could aid the firm in case expansion to other wells is required.

The underwriters of this option included Citigroup, Credit Suisse Securities (USA) LLC, and Goldman, Sachs & Co. They have a period of 45 days to exercise their over-allotment option and purchase an additional seven million shares at the issuance price. Notably, there was no roadshow to speak to potential investors concerning the venture. Instead, all company information and material related to the new release was available through a prospectus distributed by the firm’s underwriters. The company’s common stock being traded under class A are set to appear on trading floors under the ticker VEAC. Warrants, on the other hand, will be issued under the ticker VEACW.