Delek Logistics sets IPO price range at $19-$21 per share
(Reuters) - Delek Logistics Partners LP, a unit of oil refiner and convenience store retailer Delek U.S. Holdings Inc (DK.N), said it expects its initial public offering of 8 million shares to be priced between $19 and $21 each.
At the midpoint of the expected range, the company will raise $160 million in proceeds, a big part of which will be used to repay debt and fund capital expenditure.
Delek Logistics was formed by Delek U.S. Holdings to own and operate logistics and marketing services for crude oil and refined products, it said in a filing with U.S. Securities and Exchange commission.
Israeli energy, real estate and insurance conglomerate Delek Group (DLEKG.TA) has a 63 percent stake in Delek U.S. Holdings, which has a market value of about $1.11 billion.
Delek Logistics, which expects to list on the New York Stock Exchange under the symbol "DKL," expanded its list of lead underwriters to four by adding Goldman Sachs and Wells Fargo Securities. Its other two lead underwriters are Bank of America Merrill Lynch and Barclays.
The company reported net profit of $17.5 million on revenue of $404.96 million for the first half of the year, according to the filing.
(Reporting by Avik Das in Bangalore; Editing by Supriya Kurane)