Kinder Morgan (KMI) Concludes Its Initial Public Offering
Zacks Investment Research | Jun 01, 2017 08:24AM ET
Kinder Morgan, Inc. (NYSE:KMI) and Kinder Morgan Canada Limited announced the completion of the initial public offering (IPO) of 102,942,000 restricted voting shares. Shares are priced at $17 a piece that takes the total proceeds to about C$1.75 billion.
The funds raised from the IPO will be used by Kinder Morgan Canada to indirectly obtain an interest of about 30% from Kinder Morgan, which includes a limited partnership between the two companies. Kinder Morgan will use the fund to lower its debt. With the closure of the IPO, Kinder Morgan adheres to the final condition in its investment approval for the Trans Mountain Expansion Project.
The IPO was made through a group of underwriters co-led and joint bookrun by TD Securities Inc. and RBC Capital Markets. The underwriters have been granted an over-allotment option to acquire additional restricted voting shares up to 15,441,300 at the offering price, exercisable in whole or in part, from time to time, until 30 days after closing the offering.
Upon closure of the IPO, Kinder Morgan holds about 70% of the issued and outstanding shares of the Kinder Morgan Canada through its indirect ownership of 242,058,000 special voting shares. Kinder Morgan also has about a 70% interest in the limited partnership that holds the business. The restricted voiting shares will begin trading on May 30 on the Toronto Stock Exchange under the symbol 'KML'.
The company's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the U.S. Securities Act) or any state securities laws. Consequently, these securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Kinder Morgan’s price chart, however, is unimpressive. Shares of the company have lost 14.2% in the last three months, while the Zacks Zacks Investment Research
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