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 Merrill Lynch, Credit Suisse, Citigroup, Barclays, Morgan Stanley, Royal Bank of Canada's RBC Capital Markets, and the securities arm of Deutsche Bank.
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 and made its market debut in 2012.
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