British Petroleum (BP) declared that its wholly-owned subsidiary BP Midstream partners LP has announced terms for its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) under the ticker symbol "BPMP". The company will raise US$850m by offering 42.5 million units at a price ranging between US$19 and US$21. The offered units represent an approximate 40.6% limited partner interest in BP Midstream Partners, or an approximate 46.7% limited partner interest if the potential underwriters exercise their option to purchase additional units.
The rationale behind the decision is to raise more funds, attract potential investors and boost the value of its pipeline assets. BP Midstream's headquarters will be based in Houston (US) with additional offices in Chicago. Once the IPO is completed, BP will own more than 53% of the midstream business.
BP Midstream Partners LP was set up back in 2017 and owns a portion of BP's US pipeline assets, primarily BP's Gulf Coast and Midwest assets across the US, specifically its Gulf of Mexico pipelines along with processing and storage capacity connecting its deepwater Gulf platforms to Louisiana.
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