PetroLogistics files $ 600 million IPO

PetroLogistics files for $ 600 million IPO

4:34 PM, 23rd June 2011
PetroLogistics files for $ 600 million IPO

 

NEW YORK, US: PetroLogistics LP, a company that makes propane into a substance called propylene that’s used in consumer and industrial goods, said it hopes to raise about $ 600 million in an initial public offering (IPO) to reimburse employees and company backers including two private equity firms.

The Houston company did not say at what price it hopes to sell its units, how many units it would offer or when. Some of the IPO proceeds will reimburse private equity firms Lindsay Goldberg LLC and York Capital Management for construction costs.

PetroLogistics started operating in October at a plant it bought from Exxon Mobil Corp in March 2008. In 2010, PetroLogistics posted a net loss of $ 39.7 million on revenue of $ 30.4 million. For the first three months of 2011, the company posted a net loss of $ 22.9 million on revenue of $ 105.8 million.

The company said it has benefited from recent trends in energy markets. The increasing supply of natural gas and lower prices for natural gas means lower costs for PetroLogistics. Propane is a by-product of processing natural gas.

Companies that make propylene out of oil, meanwhile, have seen their costs spike and that’s made them less competitive, PetroLogistics said.

The company has multiyear contracts with Dow Chemical and Total Petrochemicals USA Inc.

PetroLogistics plans to trade on the New York Stock Exchange under the symbol ‘PDH.’

© The Associated Press News

 

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


Fujifilm and Mitsubishi form partnership for biopharmaceuticals

  TOKYO, JAPAN: Fujifilm Corporation and Mitsubishi Corporation announced that they have entered into a partnership in the contract manufacturin ...

Read more
Rhodia to increase global hydroquinone capacity

  LYON, FRANCE: Rhodia has decided to step up its worldwide production capacity of hydroquinone by 20 per cent. This will take place especially ...

Read more
BASF to expand MDI capacity in Korea

YEOSU, KOREA: BASF signed an agreement to expand its Yeosu facility for MDI. BASF and other companies will collectively invest a total of KRW 80 billi ...

Read more
Compass Minerals to nearly double Magnesium Chloride capacity

  OVERLAND PARK, US: Compass Minerals will increase its magnesium chloride production capacity from 550,000 liquid ton to one million ton by 201 ...

Read more
Air Products acquires Poly-Flow Engineering in US

ALLENTOWN, US: Air Products, announced it has acquired the business of Poly-Flow Engineering LLC (PFE), a manufacturer of equipment for the semiconduc ...

Read more
ShawCor and Welspun sign $ 60 million contract

  ONTARIO, CANADA: ShawCor Ltd’s pipecoating division, Bredero Shaw, has received a contract valuing excess of $ 60 million from Welspun C ...

Read more