WhiteHawk Minerals, a natural gas royalty company, is aiming for a $701 million valuation at its US IPO

WhiteHawk?is aiming for a valuation up to $701.2 mln?in the U.S. Initial Public Offering, as it aims to tap into?investors appetite for domestic energy assets.

It said that the company based in Philadelphia, Pennsylvania, is looking to raise up to $187m by selling approximately 6.9 million shares at a price between $25 and $27 each.

As the Middle East conflict continues to drive up crude prices, many energy companies and those with an interest in the energy sector have listed 'plans to take advantage of the opportunity.

Peer EagleRock is a Permian royalty firm that went public earlier this month. It has since gained 27% at the latest close.

WhiteHawk's investors include billionaire Leon Cooperman and Omega Capital Partners. The company has benefitted from the rising demand for natural gas in order to power U.S. electrical generation.

Lukas Muehlbauer, IPOX Research Associate, said that the AI electricity story resonates strongly with investors.

WhiteHawk, founded in 2022, has concentrated its royalty interests in the Haynesville and Marcellus shales. These areas covered approximately 3.4 million gross unit acres as of March 31.

Appalachia is located near major data center growth corridors such as Virginia, Ohio and Pennsylvania.

Funds and accounts managed by Horizon Kinetics Asset Management, T. Rowe Price Investment Management, and other cornerstone investors are expected to purchase up to 74 million shares.

Raymond James,?Stifel, and J.P. Morgan will be the joint bookrunners. WhiteHawk Minerals is set to list on the NYSE with the symbol "WHK". (Reporting and editing by Vijay Kishore in Bengaluru, Arasu Kanagi Basil from Bengaluru)

(source: Reuters)