You are here
HOUSTON -- Phillips 66 Partners LP raised $377.8 million from its initial public offering (IPO), more than it expected. The master limited partnership (MLP), spun off from Phillips 66 today, sold 16.4 million shares at $23 each.
The new company owns, operates, develops and acquires primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals, as well as other transportation and midstream assets. It was originally expected to sell 15 million shares priced between $19 and $21 each, but the MLP raised the number of shares and stock price due to robust public demand.
Phillips 66 Partners began trading on the New York Stock Exchange today under the symbol PSXP. Investors cheered the IPO, with the stock trading at $29.72 in afternoon trade, a one-day gain of more than 29 percent.
The underwriters of the transaction -- J.P. Morgan, Morgan Stanley, BofA Merrill Lynch, Barclays, Credit Suisse, Deutsche Bank Securities, Citigroup and RBC Capital Markets -- are acting as book-running managers for the IPO. These financial institutions have a 30-day option to purchase an additional 2.25 million common units of Phillips 66 Partners. If they exercise this option, Houston-based Phillips 66 will retain a 26-percent stake in Phillips 66 Partners.