After withdrawing a planned spin-off of a master limited partnership in November, SunCoke Energy Inc. (NYSE: SXC) this morning announced that its wholly-owned subsidiary SunCoke Energy Partners L.P. has launched an initial public offering of 13.5 million common units. The new company will trade on the New York Stock Exchange under the ticker symbol SXCP.
SunCoke is the country’s largest producer of metallurgical coke, which is used for steel making. The parent company will own the 2% general partner interest in the new company, as well as all the incentive distribution rights and the remaining common units.
The underwriters have been granted a 30-day overallotment option on 2.03 million shares. The common units included in the IPO represent 43% of SunCoke Energy Partners’ shares, but the portion will rise to 49.4% if the overallotment is exercised. SunCoke Energy Inc. is majority-owned by Sunoco Inc., which merged with Energy Transfer Partners L.P. (NYSE: ETP) last year.
In November, the IPO was expected to raise up to $350 million and the funds were to be used to pay down debt and to enable expansion.
Shares of SunCoke Energy are inactive in the premarket this morning, having closed at $16.78 last night. The stock’s 52-week range is $11.01 to $17.59.