The limited partnership from British oil giant BP was priced below the expected range Wednesday as the master limited partnership sector hit a new low for the year.
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BP Midstream Partners (BPMP) offered 42.5 million common units at $18 each, below the initial range of $19 to $21, raising $765 million before any overallotment.
The MLP sector has been weak lately with the benchmark AMZ index down 2% yesterday to a new low for 2017. The index is off 17% so far this year. Many MLPs also hit new 52-week lows yesterday as did Kinder Morgan (KMI), which is structured as a corporation but resembles an MLP.
A recent MLP new issue from Oasis Midstream Partners (OMP) finished yesterday at $16.33, having fallen below its IPO price of $17 in September. BP Midstream Partners will hold U.S. energy pipeline assets formerly owned by BP.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
