Williams Pipeline Partners rises in market debut

NEW YORK Jan 17 (Reuters) - Williams Pipeline Partners LP WMZ.N rose 3 percent in its stock market debut on Friday after an initial public offering that priced in the middle of expectations.

The shares stood at $20.60 in early trade on the New York Stock Exchange, up 60 cents from the offering price.

On Thursday WPP raised $325 million with the sale of 16.25 million common units at $20 each, according to an underwriter. The forecast price range was $19 to $21.

The company is a limited partnership recently formed by Williams Cos Inc (WMB.N) to own and operate natural gas transportation and storage assets. Its initial asset is a 35 percent stake in Northwest Pipeline GP, a 3,900-mile gas pipeline system that extends from the San Juan Basin in New Mexico to the U.S. Northwest.

WPP was the year's first IPO by other than a blank-check company -- shell companies that sell shares to investors on a promise of a future acquisition.

Although other IPOs were scheduled this week, Williams was the only one to come to market. The others were postponed due to the rocky state of U.S. equity markets.

"The mere fact that Williams was able to come out and price at the mid-range is impressive," said Scott Sweet, managing director of research firm IPOboutique.com.

The involvement of seasoned management attracted investors and a roughly 6 percent dividend on the units was a sweetener, Sweet added.

Underwriters, led by Lehman Brothers LEH.N and Citigroup (C.N), have an option to purchase an additional 2.4 million units to cover overallotments. (Reporting by Lilla Zuill; editing by John Wallace)