BioAge, BKV shares end their first trading day flat after earlier gains

By Steve Gelsi

Obesity-drug developer BioAge holds on to a slim gain, while Texas-based Barnett Shale driller BKV trades flat

Obesity-drug developer BioAge Labs Inc. held on to a slim gain at the closing bell and natural-gas producer BKV Corp. ended flat Thursday, the day the two initial public offerings debuted.

At the closing bell, BioAge's stock (BIOA) stood at $18.31 for a 1.7% gain over its IPO price. Earlier, the stock had been up as much as 30%.

BKV's stock (BKV) finished its first day of trading at $18, flat with its IPO price.

BKV misses IPO price range

Denver-based BKV's IPO priced below its estimated range of $19 to $21.

The Barnett Shale natural-gas producer raised $270 million by offering 15 million shares with underwriters Citigroup, Barclays, Evercore ISI, Jefferies and Mizuho.

BKV Chief Executive Christopher P. Kalnin was previously an executive at Level 3 Communications as well as the chief executive of PTT Exploration, an oil- and gas-production company based in Thailand. He founded BKV in 2015.

Kalnin told MarketWatch he brought his technology experience to bear in founding BKV, which launched as part of an effort by Thailand-based energy giant Banpu (TH:BANPU) to set up shop in the U.S.

Banpu continues to own about 76% of BKV's stock after selling shares in the IPO.

Kalnin said that despite volatility in the markets and uncertainty around the U.S. election, he felt it was a good time to go public.

"There's pent-up IPO demand on the energy side," he told MarketWatch.

With interest rates coming down and a need for natural gas to generate power for data centers, BKV saw the current environment as favorable for its IPO, Kalnin added.

The proceeds from the IPO will help the company build up its balance sheet for acquisitions and capital projects, he said.

BKV differs from other natural-gas producers in its use of blockchain technology to manage its carbon-offset credits, among other practices that Kalnin said the company has borrowed from the tech sector.

It also focuses on developing gas wells in areas with energy basins with production declines that take much longer than others, he noted.

BioAge Labs prices at $18 a share

Richmond, Calif.-based BioAge Labs (BIOA) priced 11 million shares at $18 each, in the middle of its $17 to $19 price range.

The company raised $198 million with underwriters Goldman Sachs, Morgan Stanley, Jefferies and Citigroup.

BioAge defines itself as a clinical-stage biopharmaceutical company developing drugs for metabolic diseases, such as obesity, by targeting human aging.

Its lead product candidate is Azelaprag, an obesity treatment that's in Phase 1 trials for approval by the U.S. Food and Drug Administration.

-Steve Gelsi

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09-26-24 1635ET

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