Five Point-backed WaterBridge valued at nearly $3 billion as shares jump in NYSE debut

By Ankita Bora and Arasu Kannagi Basil

Sept 17 (Reuters) - WaterBridge Infrastructure's WBI.N shares jumped 25% in their debut on the New York Stock Exchange on Wednesday, giving the midstream water management firm a market valuation of nearly $3 billion.

Shares of the Houston, Texas-based company, which is backed by private equity firm Five Point, opened at $25 each, compared with the offer price of $20 apiece.

WaterBridge sold 31.7 million shares to raise $634 million in an upsized initial public offering. It had earlier marketed 27 million shares for $17 to $20 apiece.

U.S. IPOs have made a long-awaited comeback this fall as investors looked past tariff uncertainty. Record high equity markets and rate cut expectations have also given a shot in the arm for new listings.

WaterBridge operates water networks across key U.S. shale basins, offering supply, recycling and disposal services to oil and gas producers.

"WaterBridge's IPO likely will be an important indicator to gauge the oil and gas energy market in general," said Jeff Whittle, head of law firm Womble Bond Dickinson's global energy and natural resources industry sector.

While there was a spurt of energy IPOs at the start of the year, the cadence of stock market listings from the industry has since slowed down.

Venture Global VG.N, Flowco FLOC.N and Infinity Natural Resources INR.N, which went public earlier this year, are all trading below their offer price.

"Companies may be waiting until (crude oil) prices increase to get higher valuations prior to attempts to go public," Whittle said.

WaterBridge had eyed a New York listing for some time, having first confidentially filed in 2018. The firm has since bulked up through acquisitions and sold a minority stake to Singapore's sovereign wealth fund, GIC.

The successful listing is also a major win for David Capobianco's Five Point, which formed WaterBridge in 2016.

LandBridge LB.N, another Five Point-backed company, has tripled since its debut last year.

WaterBridge partners with LandBridge to use underutilized pore space in the Delaware Basin to meet rising water-handling demand.