Let's consider it another positive sign for the market. From where I sit, I'm specifically watching the energy initial public offering calendar with lots of optimism.
This week will feature a financial coming-out for Kinder Morgan. The offering is expected to raise about $2.2 billion, making it the biggest energy IPO in some time and the largest IPO ever to be born of private equity owners. In this case, that means the private-equity arm of Goldman Sachs
Highly regarded Kinder Morgan Inc. counts stakes in three energy pipeline companies among its holdings, with Kinder Morgan Energy Partners LP
Richard Kinder will retain all of his shares in Kinder Morgan, while the other proceeds from the offering will go to the private equity holders. Nevertheless, all of the current owners will remain meaningful ownership in the company, which will be New York Stock Exchange-listed, trading under the KMI symbol.
Then there's Dallas-based Kosmos Energy, which last month filed to offer an IPO of up to $500 million of its shares, although the timing is uncertain. While that offering will be dwarfed by Kinder's, don't be surprised if Kosmos is simply sticking a proverbial finger in the air, prior to launching a larger offering.
Kosmos is also owned primarily by private equity firms, in this case Blackstone Group
Kosmos's Jubilee interest has been shopped liked a 1957 Chevrolet. A couple of years ago, ExxonMobil
So keep abreast of both offerings. Each is intriguing in its own way, and each offers a fresh new opportunity for Fools who cotton to energy.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Fool contributor David Lee Smith doesn't own shares in any of the companies mentioned. The Motley Fool has a disclosure policy.