Shell pipeline IPO price announced
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Shell Midstream Partners LP is seeking US$ 787.5 million in a US initial public offering.
The Houston-based company, which owns a stake in the Houston-to-Houma (Ho-Ho) crude oil pipeline among others, is offering 37.5 million shares at US$ 19 - 21 each, according to a regulatory filing.
The offering is scheduled to price on 28 October.
Royal Dutch Shell Plc is selling assets to focus on projects with the highest returns for investors. Shell, which earlier this year had sought an investor in the Ho-Ho pipeline, will receive more than half the IPO proceeds in the form of a payment from Shell Midstream.
The company is structured as a master-limited partnership, or MLP, which means that it is exempt from some taxes and must distribute most of its income to investors.
A number of MLPs, including PBF Logistics LP, Viper Energy Partners LP and GasLog Partners LP, have listed this year.
MLPs that hold midstream assets, such as pipelines and storage facilities, have found favour with investors since they distribute most of their earnings to shareholders.
The company said it planned to list its units on the New York Stock Exchange under the symbol "SHLX".
Edited from various sources by Elizabeth Corner
Read the article online at: https://www.worldpipelines.com/business-news/21102014/shell-pipeline-ipo-price-announced/
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