NEW YORK (AP) — Shares of PetroLogistics LP fell Friday in their first day of trading on the New York Stock Exchange.
The stock was down 50 cents, or 3 percent, at $16.50 in afternoon trading versus the $17 per unit offering price. The IPO was expected to price between $17 and $19.
PetroLogistics traded in a range of $14.50 to $16.60.
The IPO includes 35 million units, with Propylene Holdings LLC selling 33.5 million units and PetroLogistics selling 1.5 million units. The company raised $595 million.
PetroLogistics will not receive any proceeds from the units sold by Propylene. The company said in a filing with the Securities and Exchange Commission that it would use its net proceeds for working capital and general partnership purposes, for funding certain future capital expenditures at its propane dehydrogenation plant, including a portion of those associated with a planned maintenance project in 2013 to replace the reactor catalyst and for funding part of the distributions to common unitholders for the lost margin resulting from such action.
Propylene is giving the underwriters a 30-day option to buy up to approximately 5.3 million additional units. The offering is expected to close on Wednesday.
PetroLogistics, based in Houston, is trading under the ticker "PDH."
The company's 2011 net income was $21.9 million, compared with a loss of $39.7 million in the prior-year period. Pro forma net income for 2011 was $12.9 million. Revenue increased to $614.9 million from $30.4 million in 2010.