Kinder Morgan Holdco LLC, the parent company of Houston-based Kinder Morgan Inc., was gearing up for $ 2.2 billion in the biggest initial public offering by a U.S oil and gas company since 1998 when Conoco Inc., went to market.
The private equity-backed company said that the offering would sell 80 million shares at $ 26 to $ 29 each.
Existing investors who include funds advised by or affiliated with Highstar Capital LP, Goldman Sachs & Co., the Carlyle Group and Riverstone Holdings LLC will sell all of the common stock in its public debut.
As planned, its stock under the symbol “KMI” will trade on the New York Stock Exchange. Goldman Sachs and Barclays Capital will act as joint book-running managers for the offering. Both will have the option to buy another 12 million shares of common stock from the selling stockholders.
Others including BofA Merrill Lynch, Citi, Madison Williams and Company, Deutsche Bank Securities, J.P. Morgan, Credit Suisse, Wells Fargo Securities, RBC Capital Markets and Simmons & Company International, Morgan Keegan, Raymond James will act as co-managers.
Kinder Morgan said that it aimed at increasing dividends to its stockholders. The company reported a total of $ 133.4 million in net income in three quarters ended Sept. 30 and revenue of $ 6.24 billion. Its total assets were almost $ 29 billion.
The debut is seen as a means for Kinder’s private equity partners to monetize their investment. Additionally, the IPO may lure investors who are looking for a way to buy into Kinder Morgan Partner’s network of pipelines.
According to Jason Stevens, an analyst at Morningstar, most mutual funds will have chances to invest in the company’s underlying cash flows.
Kinder Morgan Partners is the owner of 8,400 miles of refined petroleum product pipelines in the U.S and 1,400 miles of U.S. carbon dioxide pipelines.
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