Plains GP, which was created to pay dividends on behalf of oil-and-gas Master Limited Partnership (MLP) Plains All American Pipeline (PAA), sold 128M shares at $22 each, the low end of the prospective range of $22-25. There is also a greenshoe option for another 19M shares.
Plains GP intends to use the proceeds from the IPO to acquire a stake in Plains All American from existing shareholders that include Occidental Petroleum (OXY).
Plains GP shareholders will receive quarterly dividends from Plains All American on the condition that the latter meets certain minimum requirements. Plains GP expects an initial payout of 14.9 cents a share.