* Intends to list on the NYSE under the symbol “PDH”
* Morgan Stanley leading underwriters (Adds details on PetroLogistics’ business and owners; adds dateline)
BANGALORE/NEW YORK, June 21 (Reuters) - PetroLogistics LP, which produces propylene from propane, filed with U.S. regulators on Tuesday to raise up to $600 million in an initial public offering of common stock.
The company said high oil prices are shutting down rivals who rely on oil byproducts to make propylene, while increased shale gas production is resulting in more propane, which is the basis for PetroLogistics’ business.
Propylene is one of the basic ingredients of petrochemicals used in paints, clothing and auto parts.
The Houston, Texas-based company, owner and operator of the world’s largest propane dehydrogenation facility, has multiyear contracts to sell propylene to Dow Chemical Co (DOW.N), Total Petrochemicals USA Inc and INEOS Olefins and Polymers USA. It posted a net loss of $22.9 million on sales of $105.8 million in the three months ended March 31.
The filing did not reveal how many units PetroLogistics plans to sell in the IPO or the expected price range. The company said it would use proceeds from the offering to pay its sponsors, affiliates, executives and employees.
PetroLogistics is majority-owned by private equity firm Lindsay Goldberg and investment firm York Capital.
Morgan Stanley, Citi, UBS Investment Bank and Wells Fargo Securities are joint bookrunning managers on the IPO, according to the filing with the U.S. Securities and Exchange Commission.
The company intends to list its common stock on the New York Stock Exchange under the symbol “PDH.” PDH.N
The amount of money a company says it plans to raise in its first IPO filing is used to calculate registration fees. The final size of the IPO could be different. (Reporting by Tanya Agrawal in Bangalore and Clare Baldwin in New York; Editing by Sriraj Kalluvila and John Wallace)