HOUSTON (AP) — Plains GP Holdings LP has raised approximately $2.82 billion in its initial public offering.
The oil and natural gas company said that the IPO of 128 million shares priced at $22 each, at the low end of its projected range of $22 to $25 per share.
Plains GP is giving the underwriters a 30-day option to buy up to an additional 19.2 million shares.
The company said that it plans to distribute the offering's net proceeds, along with any proceeds received if the underwriters exercise their option, to existing owners of Plains AAP LP, who are selling part of their interest in Plains GP to the company in connection with the offering. Plains AAP currently owns all of the incentive distribution rights and an indirect 2 percent general partner interest in Plains All American Pipeline LP. Plains GP will own a 21.1 percent limited partner interest in AAP once the offering closes.
The shares are expected to start trading on the New York Stock Exchange on Wednesday under the "PAGP" ticker symbol.
The offering is targeted to close on Monday.