Royal Dutch Shell’s subsidiary Shell Midstream Partners has priced its initial public offering (IPO) of 40 million common units at $23 each.
Shell Midstream Partners had initially planned to provide 37.5 million units priced between $19 and $21 each.
The underwriters have a 30-day option to purchase up to an additional 6,000,000 common units from Shell Midstream Partners.
The offering is anticipated to close on or about 3 November 2014, subject to customary closing conditions.
Shell Midstream Partners was formed to own, operate, develop and acquire pipelines and other midstream assets.
The partnership’s initial assets include interests in entities that own crude oil and refined products pipelines helping to transport onshore and offshore crude oil production to Gulf Coast refining markets.
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By GlobalDataIt will also deliver refined products from the markets to major demand centres.
International law firm Baker Botts has advised Shell Midstream Partners in the IPO.
Baker Botts has also represented Evercore as financial advisor to special committee in Western Gas Partners’ $1.5bn acquisition of Nuevo Midstream.
The acquisition, which is subject to regulatory approval, is expected to be completed in the fourth quarter of 2014.
