Alon USA units rise in first hours of trading
DALLAS (AP) — Alon USA units rose 6 percent in their first hours of trading, after an initial public offering of 10 million common units that raised $160 million in proceeds.
The unit of refinery operator Alon USA Energy Inc. runs a crude oil refinery in Big Spring, Texas, and it sells fuels produced at the refinery to customers in Texas, Oklahoma, New Mexico, and Arizona. The partnership was formed in August 2012. Its revenue was $1.7 billion in the first half of this year.
The company sold the units in the IPO for $16 each. On Tuesday, they opened at $17 and rose to $18.25 by midday. The offering is expected to close on Monday, subject to customary closing conditions.
The underwriters of the offering also were granted a 30-day option to buy up to an additional 1.5 million common units. When the deal closes, the public will own a 16 percent limited partner interest in Alon USA Partners LP, or an 18.4 percent limited partner interest if the underwriters exercise their overallotment option in full, the company said.
The shares are being trading on the New York Stock Exchange under the symbol "ALDW."