HOUSTON (AP) - Shell Midstream Partners LP is soaring in its debut on the New York Stock Exchange.
HOUSTON (AP) — Shell Midstream Partners LP is soaring in its debut on the New York Stock Exchange.
Its common units jumped $9.04, or 39.3 percent, to $32.04 in Wednesday morning trading.
Shell Midstream's initial public offering of 40 million common units raised $920 million.
The master limited partnership, which was created by Royal Dutch Shell to own, run, develop and acquire pipelines and other midstream assets, priced the offering at $23 per unit. That's above the projected price range of $19 to $21 per unit.
The Houston company's assets include stakes in Zydeco Pipeline Co., Mars Oil Pipeline Co., and Bengal Pipeline Co., which all operate in Louisiana, Texas, and Mississippi. Mars also works in the Gulf of Mexico. The company also has a small stake in Colonial Pipeline Co., which owns pipelines running from Texas to the Northeast.
The underwriters have a 30-day option to buy up to an additional 6 million units from Shell Midstream.
The stock is trading under the ticker symbol "SHLX."
Once the offering closes, the public will own a 29 percent limited partner interest in Shell Midstream. That will increase to 33.4 percent if the underwriters fully exercise their option. Royal Dutch Shell will own the remaining limited partner interest, along with its 2 percent general partner interest.
Also, Sientra Inc. will begin trading on the Nasdaq on Wednesday under the "SIEN" ticker symbol. The breast implant maker raised $75 million from its IPO of 5 million shares. The offering priced at $15 per share, the midpoint of the projected range of $14 to $16 per share.
The underwriters have a 30-day option to buy up to an additional 750,000 shares.
Sientra is based in Santa Barbara, California.
Both offerings are targeted to close on Nov. 3.