The joint bookrunners for the offering are Barclays, Citigroup, Morgan Stanley and UBS Investment Bank. Co-managers are Credit Suisse, Goldman Sachs, J.P. Morgan, Wells Fargo Securities, RBC Capital Markets and Credit Agricole CIB.
The units were priced at $23, originally thought to be within the projected price range of $19 to $21. Shares entered the market at $32.00, 39% up from the pricing. There were 37.5 million units in the offering, with the potential to add another 2.5 million.
The originally projected price range expected to raise $750 million at a market value of around $1.35 billion. However, the pricing at $23 gave Shell the potential to raise up to $920 million. The Wall Street Journal reported that this is set to be the largest MLP IPO in over a decade.
The IPO exchange traded fund (ETF) manager Renaissance Capital reports that 231 IPOs have priced in the United States so far this year, up about 34% from a year ago. Total proceeds raised come to $73.6 billion, up about 79% from 2013. To date in the month of October, IPO proceeds total $4.6 billion. Last week’s IPOs added $300 million to the October total. The 2013 IPO total came in at $54.9 billion, the highest total in the past 10 years, and that has already been surpassed with more than two months left in 2014.
Shares of Shell Midstream were up 44% at $33.13 entering the noon hour of trading. Thus far, the company had moved over 23 million shares.
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