NEW YORK, N.Y. – Shares of oil and natural gas pipeline company Plains GP Holdings LP are modestly higher in their market debut.
The stock gained 55 cents, or 2.5 per cent, to $22.55 in Wednesday morning trading.
Plains GP priced the initial public offering of 128 million shares at $22 each, at the low end of its projected range of $22 to $25 per share. It raised about $2.82 billion in the offering.
The Houston-based company, which operates crude oil and natural gas pipelines, fracturing facilities and processing plants in Canada and the U.S., is giving the underwriters a 30-day option to buy up to an additional 19.2 million shares.
Plains GP said that it plans to distribute the offering’s net proceeds, along with any proceeds received if the underwriters exercise their option, to existing owners of Plains AAP LP, who are selling part of their interest in Plains GP to the company in connection with the offering. Plains AAP currently owns all of the incentive distribution rights and an indirect 2 per cent general partner interest in Plains All American Pipeline LP. Plains GP will own a 21.1 per cent limited partner interest in AAP once the offering closes.
The shares are trading on the New York Stock Exchange under the “PAGP” ticker symbol.
The offering is expected to close on Monday.