(Reuters) - BP Midstream Partners’ said on Wednesday its initial public offering was priced at $18 per unit, below the expected range of $19 to $21, raising about $765 million.
The unit of British energy company BP Plc (BP.L), which sold 42.5 million units, is scheduled to debut on the New York Stock Exchange under the symbol “BPMP” on Thursday, it said in a statement.
The offering values BP Midstream at about $1.9 billion.
The master limited partnership (MLP) was formed by London-based BP's U.S. pipeline unit to transport crude oil, refined products and diluents to customers under long-term agreements. (bit.ly/2ge6biF)
An MLP structure is often used by pipeline and other capital-intensive companies to distribute excess cash to investors in the form of tax-deferred dividends.
BP Midstream, which operates in the U.S. Midwest and the Gulf of Mexico, posted net income of $63 million for the six months ended June 30, on a pro forma basis, the company said in a filling. (bit.ly/2xoemj9)
Citigroup, Goldman Sachs, Morgan Stanley, Barclays are among the top underwriters of the IPO.
Reporting by Nikhil Subba in Bengaluru; Additional reporting by Parikshit Mishra; Editing by Sriraj Kalluvila and Richard Chang