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Pacific Energy IPO Raises $167.7 Million

July 23, 2002|From Bloomberg News

Pacific Energy Partners, an oil-pipeline operator controlled by billionaire Philip Anschutz, managed to float an initial public stock offering Monday despite Wall Street's latest plunge.

But the total amount raised, $167.7 million, was less than what Anschutz had hoped for.

Long Beach-based Pacific Energy sold 8.6 million units at $19.50 apiece, fewer than the 9.1 million units the company initially planned to sell. Also, the price was below the company's initial target of $20.50 per unit.

Citigroup Inc.'s Salomon Smith Barney unit managed the sale.

Pacific Energy's assets include petroleum pipelines and storage terminals near Los Angeles.

Buyers of the units are taking a minority limited-partnership interest in the company. Affiliates controlled by Anschutz Corp. maintain a majority stake.

The units will begin trading on the New York Stock Exchange today under the symbol PPX.

Few IPOs have made it to market in recent weeks.

On Monday, Dunlop Standard Ltd., which makes brakes for Boeing 757 jets, canceled its planned IPO.

A total of $2.6 billion in IPO deals have been scrapped this month as the market has tumbled.

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