Nov 20 (Reuters) - Shares of Alon USA Partners LP rose more than 9 percent in their market debut on Tuesday, a day after the company priced its initial public offering of 10 million shares at $16 each.
The pricing was significantly below the company’s expected price range of $19 to $21 per share.
Alon USA Partners, a unit of Alon USA Energy Inc, was formed to own and operate its parent’s refining and petroleum marketing business in South Central and Southwestern regions of the United States.
The Dallas-based company had filed with the U.S. Securities and Exchange Commission in August to raise up to $230 million in an IPO.
Seadrill Ltd, the world’s biggest deep-sea drilling rig owner, Delek Logistics Partners LP, Southcross Energy Partners, Lehigh Gas Partners LP, and Diamondback Energy Inc have gone public last month with an average gain of 10 percent above their IPO price.
Goldman Sachs & Co, Credit Suisse and Citigroup are acting as lead underwriters to the offering.
The company, which reported net income of $268.7 million on revenue of $2.65 billion for the nine months ended September 30, plans to use the proceeds from the offering to repay debt and for capital expenditure purposes.
The company’s shares were trading at $17.29 on Tuesday morning on the New York Stock Exchange.