NEW YORK (Reuters) - Shares of oil terminal and storage services provider Oiltanking Partners LP OILT.N began trading on Thursday 11 percent higher than they had been priced in an initial public offering.
In morning trading on the New York Stock Exchange, the company’s shares were selling for $23.87.
The IPO of 10 million units priced on Wednesday at $21.50 each, above the anticipated range of $19 to $21. The Houston-based company had already increased the size of its IPO late last month.
The company is banking on the need for Gulf Coast refiners to handle growing volumes of shale oil from North Dakota and Texas, boosting demand for its storage capacity of 17.8 million barrels at Houston and Beaumont, two terminals where it has said another 12.4 million barrels of capacity could be added.
Its general partner is owned by Oiltanking Holding Americas Inc, a subsidiary of Oiltanking GmbH, the world’s second-largest independent storage provider for crude oil, refined products, liquid chemicals and gases.
Reporting by Steve James; Editing by Lisa Von Ahn