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Shell Midstream surges in 1st day on NYSE

🕐 1 min read

 

HOUSTON (AP) — Shell Midstream Partners LP is soaring in its debut on the New York Stock Exchange.

Its common units jumped $10.15, or 44 percent, to $32.15 in Wednesday midday 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.

 

Sientra Inc., based in Santa Barbara, Calif., also started trading on the Nasdaq on Wednesday. The stock — trading under the “SIEN” ticker symbol — surged $2, or 13 percent, to $17 in morning trading.

 

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.

 

Both offerings are targeted to close on Nov. 3.

 

Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

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