Friday, February 11, 2011

Kinder Morgan initial public offering opens up 5.6 percent

NEW YORK - The initial public offering of energy company Kinder Morgan Inc. (NYSE: KMI) rose more than five percent on Feb. 11, KMI’s first day back as a public company.

The rise came even after the initial size of the offering was increased the stock was priced higher than expected.

The stock opened at $31.70 a share on the New York Stock Exchange, up 5.7 percent from its initial public offering price of $30. The stock then backed off some during the day, closing on Feb. 11 at $30.98, still up 3.3 percent.

A total of 95.5 million shares, 15.5 million more than originally planned, were sold at the $30 price, above KMI’s expected $26 to $29 float range.

Prior to the IPO, the company was wholly owned by Chairman and Chief Executive Richard D. Kinder, the private equity arm of Goldman Sachs Group Inc. (GS), Highstar Capital LP, Carlyle Group and Riverstone Holdings LLC.

Kinder Morgan Inc. owns stakes in a trio of energy companies devoted to pipelines, but its main source of income is Kinder Morgan Energy Partners L.P. (NYSE: KMP), a publicly traded pipeline operator that generates 95 percent of the cash that flows into its parent through partnership distributions.

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