A new oil partnership with a storied name has made a splash on its market debut. Phillips 66 Partners (NYSE: PSXP ) began trading on the New York Stock Exchange this morning and at the moment is trading at $29.87, nearly 30% above its IPO price of $23 per share.
All told, just over 16.4 million common units in the partnership were released in the IPO. After the issue closes, the public will collectively hold a nearly 23% limited partner interest in the enterprise, or as much as 26% if the offering's underwriters fully exercise their option to purchase 2.46 million additional units.
The partnership was brought to market by book-running managers JPMorgan Chase unit J.P. Morgan, Bank of America's (NYSE: BAC ) Merrill Lynch, Credit Suisse (NYSE: CS ) , Citigroup (NYSE: JPM ) , Barclays, Morgan Stanley, Royal Bank of Canada's (NYSE: RY ) RBC Capital Markets, and the securities arm of Deutsche Bank (NYSE: DB ) .
The company is a limited partnership created earlier this year by downstream oil concern Phillips 66 (NYSE: PSX ) . In the words of its parent, Partners was formed 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." Partners is a spinoff of a spinoff; Phillips 66 was carved out of energy major ConocoPhillips (NYSE: COP ) and made its market debut in 2012.