PetroLogistics LP, which operates the world's largest propane dehydrogenation facility, announced terms for its IPO on Monday. The Houston, TX-based company plans to raise $700 million by offering 35.0 million units (96% insider) at a price range of $19 to $21. At the midpoint of the proposed range, PetroLogistics LP would command a market value of $2.8 billion.
PetroLogistics's facility processes propane into propylene, which is used in a variety of consumer and industrial applications, including paints, clothing, automotive parts and packaging. Production began in 2010 and reached 845 million pounds in 2011. Sales for the year were $615 million and net income was $22 million. Based on preliminary estimates, production for the quarter ended 3/31/12 increased 129% to 331 million pounds.
PetroLogistics LP plans to list on the NYSE under the symbol PDH. Morgan Stanley, Citi and UBS are the joint bookrunners on the deal.
