BP Midstream Partners Seeks To Raise Up To $893MM In IPO
Oct 16 (Reuters) - BP Midstream Partners, a unit of British energy company BP Plc, said on Monday it expects to raise up to $893 million from its initial public offering.
BP Midtsream expects to sell 42.5 million shares, excluding underwriters' option, at a suggested price range of $19 to $21 each, the company said in a filing with the U.S. Securities and Exchange Commission. (http://bit.ly/2ge6biF)
BP Midstream Partners, a master limited partnership (MLP) formed by BP's U.S. pipeline unit, plans to list on the New York Stock Exchange under the symbol "BPMP".
An MLP is a tax-advantaged structure often used by pipelines and other capital intensive companies to distribute excess cash to investors in the form of tax-deferred dividends. Most MLPs rely on external debt to fund new projects.
The IPO revives a plan BP first broached internally about five years ago before slumping crude oil prices forced the oil giant to put the idea on hold, a source told Reuters in July.
Oasis Midstream Partners, an MLP formed by Oasis Petroleum Inc, fell nearly 3 percent in its debut last month, opening slightly below its offering price.
Citigroup, Goldman Sachs and Morgan Stanley are among the underwriters for BP Midstream Partners' IPO.
(Reporting By Aparajita Saxena in Bengaluru; Editing by Saumyadeb Chakrabarty)
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