NEW YORK — Pipeline company Kinder Morgan Inc. said Thursday its parent company, Kinder Morgan Holdco LLC, plans to raise $2.2 billion in the biggest initial public offering by a U.S. energy company in 13 years..
The IPO would be the biggest for a U.S. energy company since Conoco Inc.’s debut in 1998, which raised $4.4 billion, according to data provider Dealogic. Norway’s Statoil ASA 2001 IPO in New York raised $2.94 billion.
Kinder Morgan, which was taken private in 2007, said the offering would sell 80 million shares at $26 to $29 each. The underwriters have the option to buy another 12 million shares if needed.
If Kinder Morgan’s IPO priced at the middle of the expected range, the company would have a market capitalization of $19.44 billion, the largest ever for the IPO of a U.S. oil & gas company.
All of the common stock in the offering will be sold by existing investors. Those investors include funds advised by or affiliated with Goldman Sachs & Co., Highstar Capital LP, The Carlyle Group and Riverstone Holdings LLC.
Kinder Morgan will not receive any proceeds.
Kinder Morgan Holdco LLC plans to convert from a Delaware limited liability company to a Delaware corporation.
Goldman Sachs & Co. and Barclays Capital are acting as primary book-running managers.
The company said its stock will trade on the New York Stock Exchange under the symbol “KMI.”