HOUSTON — Royal Dutch Shell’s midstream partnership launched its initial public offering in New York Monday, the company announced Monday.
Shell Midstream Partners LP is offering 37.5 million common units in the limited partnership, which are expected to be listed on the New York Stock Exchange.
The company formally announced plans for the IPO in June.
Collectively, those units represent a 27.2 percent limited interest in Shell Midstream Partners, with Royal Dutch Shell and subsidiaries owning the rest.
The partnership has said it expects the units to be priced between $19 and $21 each.
Shell Midstream Partners’ assets include stakes in in four pipelines — two that transport crude and two that transport refined products — focused on the the U.S. Gulf Coast.
The crude pipelines link onshore and offshore production to refining markets, while the refined product pipelines connect the Gulf Coast and southeast refineries to demand centers from Alabama to New York, according to a description of the assets filed with the Securities and Exchange Commission.
Shell Midstream’s focus — like that of other master-limited partnerships — is to generate stable and predictable cash-flows through fee-based transportation service, it said in its filing. The partnership will also focus on growing by acquiring assets from Shell, as well as third-parties.
Share this: