Valero Energy Corporation (NYSE:VLO) Offers IPO For Its Master Limited Partnership


Dallas, Texas 12/11/2013 (FINANCIALSTRENDS) – Valero Energy Offering 15 Million Units

Valero Energy Corporation (NYSE:VLO) is an S&P 500 index tracked stock which has grown into a oil clogromorate with a market cap of $25 billion. Earlier this month, on the heels of investors coming back from an extended Thanksgiving weekend the Oil & Gas Refining & Marketing firm announced that it has lined up a initial public offering of its stand alone subsidiary Valero Energy Partners LP which has been registered as a limited partnership. As part of the IPO process, the oil manufacturer announced that it will offer up to 15 million units which will represent the holding rights of limited partners. Valero Energy Corporation (NYSE:VLO) had already filed these details with U.S. Securities and Exchange Commission and had signed up underwriters who will facilitate this public offering. As a bonus to its underwriters, the firm has announced that it will offer a 30 day option to buy out an additional 2.25 million units of the common pool for Valero Energy Partners. Once trading commences later this week, these units will be exposed to the vagaries of the stock market under the ticker VLP at the New York Stock Exchange.

New Holding Pattern

The total of 15 million units on offer to public will represent a 25.5 percent stake in the overall holding pattern of Valero Energy Partners. The parent company Valero Energy Corporation (NYSE:VLO) will hold the reminder 74.5 percent interest through its various subsidiaries. Banking consortium led by J.P. Morgan and including the who’s who of banking like “Barclays, Citigroup, RBC Capital Markets and Wells Fargo Securities” have been lined up as joint book running manage are acting as joint book-running managers . Valero Energy Corporation (NYSE:VLO) has announced that the IPO will hit the markets at a asking price of $19-$21 per unit.