MOSCOW (MRC) -- BP Midstream Partners' has announced that its initial public offering was priced at USD18 per unit, below the expected range of USD19 to USD21, raising about USD765 MM, reported Reuters.
The unit of British energy company BP Plc, which sold 42.5 MM units, is scheduled to debut on the New York Stock Exchange under the symbol "BPMP" on Thursday, it said in a statement.
The offering values BP Midstream at about USD1.9 B.
The master limited partnership (MLP) was formed by London-based BP's US pipeline unit to transport crude oil, refined products and diluents to customers under long-term agreements.
An MLP structure is often used by pipeline and other capital-intensive companies to distribute excess cash to investors in the form of tax-deferred dividends.
BP Midstream, which operates in the US Midwest and the Gulf of Mexico, posted net income of USD63 MM for the 6 mos ended June 30, on a pro forma basis, the company said in a filling.
Citigroup, Goldman Sachs, Morgan Stanley, Barclays are among the top underwriters of the IPO.
We remind that, as MRC wrote before, in Q1 2016, BP PLC sold its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. (IVL.TH), for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business. The divestment is in line with BP’s global petrochemicals strategy of pursuing a competitively advantaged portfolio through world-scale, low-cost facilities that utilize BP proprietary technology, including the production of purified terephthalic acid, or PTA, a key raw material in the production of polyester.
BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 17,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities.
MRC