HOUSTON -- Phillips 66 Partners LP's stock leapt in its first day as a public company on the New York Stock Exchange on high demand. Shares of the unit of oil refiner and chemicals company Phillips 66 climbed $6.83, or 29.7%, to $29.83 in morning trading, according to the Associated Press. PSXP raised $377.8 million from its initial public offering (IPO).
Phillips 66 Partners priced the IPO of 16.425 million shares at $23 each. The company had expected to sell 15 million shares for $19 to $21 each, according to a regulatory filing.
The underwriters of the offering have a 30-day option to purchase up to an additional 2.46 million common units from Phillips 66 Partners to cover over-allotments, if any. The offering is expected to close on or about July 26, 2013, subject to customary closing conditions.
At the closing of this offering, the public will own a 22.9% limited partner interest in Phillips 66 Partners, or a 26.3% limited partner interest if the underwriters exercise in full their option to purchase additional common units.
Phillips 66 Partners is a growth-oriented master limited partnership (MLP) formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals and other transportation and midstream assets. Based in Houston, the partnership's assets include the Clifton Ridge crude oil pipeline, terminal and storage system in Louisiana; the Sweeny to Pasadena refined petroleum product pipeline, terminal and storage system in Texas; and the Hartford Connector refined petroleum product pipeline, terminal and storage system in Illinois.
Houston-based Phillips 66, through certain of its subsidiaries, will own the remaining, majority limited partner interest in Phillips 66 Partners, as well as its 2% general partner interest.
Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining and marketing and specialties businesses. With more than 8,000 retail fuel sites and general aviation locations, its U.S. Marketing business supplies Top Tier Detergent Gasolines under the Phillips 66, 76 and Conoco brands. Phillips 66 Aviation markets and distributes its aviation fuel under the Phillips 66 Wings logo.
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