Friday, February 11, 2011

"Kinder Morgan IPO: Who’s Getting Rich?" (KMI)

From Deal Journal:
Private-equity owned Kinder Morgan is slated to kick off life (again) as a public company. And a collection of investment funds, including Goldman Sachs and the Carlyle Group, are raking in about $13.5 billion from the deal.

The pipeline company priced its IPO last night, selling about 95.5 million shares at $30 a pop.
Those $2.86 billion in proceeds aren’t going into the company’s coffers, however. All the money is making its way into the wallets of Kinder Morgan’s existing investors: the private-equity arm of Goldman Sachs, Highstar Capital L.P., the Carlyle Group and Riverstone Holdings LLC. And those funds will continue to own the majority of Kinder Morgan stock.

At the IPO price, the Goldman Sachs funds are pulling in about $954 million from the IPO, and the funds’ remaining stake in Kinder Morgan is valued at $4.4 billion, based on calculations from Kinder Morgan’s IPO filings. Carlyle and the Riverstone Funds each are pulling in $421 million, plus the $1.9 billion value of their remaining holdings in Kinder Morgan. Highstar Capital is reaping $603 million in the IPO, and its stake in Kinder Morgan is valued at $2.8 billion....MORE
HT: NetNet who writes:
So much for the death of the IPO.

The 95.5 million shares of the pipeline company Kinder Morgan hit the streets at $30 this morning and immediately popped 6 percent. 

The IPO price, which was higher than expected, will pour about $2.8 billion into the coffers of the private equity owners, including Goldman Sachs and the Carlyle Group....